S.Amdt. 2001

1. Replaces the bill's text with a full substitute

   Replaces the full textEverything after the enacting clause

   In S. 1789 · Reported to Senate

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   SECTION 1. SHORT TITLE[inserted: ; TABLE OF CONTENTS; REFERENCES].

   [inserted: (a) Short Title.--]This Act may be cited as the "[struck: 21st Century ]Postal [struck: Service][inserted: Reform] Act of 2012".

   Struck: SEC. 2. TABLE OF CONTENTS.

   [inserted: (b) Table of Contents.--]The table of contents [struck: for][inserted: of] this Act is as follows:

   Sec. 1. Short title[inserted: ; table of contents; references].

   Struck: Sec. 2. Table of contents.

   Struck: Sec. 3. Definitions.

   TITLE I--POSTAL [struck: WORKFORCE MATTERS][inserted: SERVICE MODERNIZATION]

   Struck: Sec. 101. Treatment of postal funding surplus for Federal Employees Retirement System.

   Struck: Sec. 102. Additional service credit.

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

   Struck: Sec. 104. Postal Service Health Benefits Program.

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   Struck: Sec. 105. Arbitration; labor disputes.

   Struck: TITLE II--POSTAL SERVICES AND OPERATIONS

   Struck: Sec. 201. Postal facilities.

   Struck: Sec. 202. Additional Postal Service planning.

   Struck: Sec. 203. Area and district office structure.

   Struck: Sec. 204. Post offices; retail service standards.

   Struck: Sec. 205. Conversion of door delivery points.

   Struck: Sec. 206. Limitations on changes to mail delivery schedule.

   Struck: Sec. 207. Time limits for consideration of service changes.

   Struck: Sec. 208. Public procedures for significant changes to mailing specifications.

   Struck: Sec. 209. Nonpostal products and services.

   Struck: TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

   Inserted: Subtitle A--Commission on Postal Reorganization

   Sec. [struck: 301][inserted: 101]. Short title[struck: ; references].

   Struck: Sec. 302. Federal workers compensation reforms for retirement-age employees.

   Struck: Sec. 303. Augmented compensation for dependents.

   Struck: Sec. 304. Schedule compensation payments.

   Struck: Sec. 305. Vocational rehabilitation.

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   Struck: Sec. 306. Reporting requirements.

   Struck: Sec. 307. Disability management review; independent medical examinations.

   Struck: Sec. 308. Waiting period.

   Struck: Sec. 309. Election of benefits.

   Struck: Sec. 310. Sanction for noncooperation with field nurses.

   Struck: Sec. 311. Subrogation of continuation of pay.

   Struck: Sec. 312. Integrity and compliance.

   Struck: Sec. 313. Amount of compensation.

   Struck: Sec. 314. Technical and conforming amendments.

   Struck: Sec. 315. Regulations.

   Struck: TITLE IV--OTHER MATTERS

   Struck: Sec. 401. Profitability plan.

   Struck: Sec. 402. Postal rates.

   Struck: Sec. 403. Cooperation with State and local governments; intra-Service agreements.

   Struck: Sec. 404. Shipping of wine and beer.

   Struck: Sec. 405. Annual report on United States mailing industry.

   Struck: Sec. 406. Use of negotiated service agreements.

   Struck: Sec. 407. Contract disputes.

   Struck: Sec. 408. Contracting provisions.

   [struck: SEC][inserted: Sec]. [struck: 3][inserted: 102]. [struck: DEFINITIONS][inserted: Definitions].

   Struck: In this Act, the following definitions shall apply:

   Struck: (1) Commission.--The term "Commission" means the Postal Regulatory Commission.

   Struck: (2) Postal service.--The term "Postal Service" means the United States Postal Service.

   Struck: TITLE I--POSTAL WORKFORCE MATTERS

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   Struck: SEC. 101. TREATMENT OF POSTAL FUNDING SURPLUS FOR FEDERAL EMPLOYEES RETIREMENT SYSTEM.

   Struck: Section 8423(b) of title 5, United States Code, is amended--

   Struck: (1) by redesignating paragraph (5) as paragraph (6); and

   Struck: (2) by inserting after paragraph (4) the following:

   Struck: "(5)(A) In this paragraph, the term 'postal funding surplus' means the amount by which the amount computed under paragraph (1)(B) is less than zero.

   Struck: "(B)(i) Beginning with fiscal year 2011, for each fiscal year in which the amount computed under paragraph (1)(B) is less than zero, upon request of the Postmaster General, the Director shall transfer to the United States Postal Service from the Fund an amount equal to the postal funding surplus for that fiscal year for use in accordance with this paragraph.

   Struck: "(ii) The Office shall calculate the amount under paragraph (1)(B) for a fiscal year by not later than June 15 after the close of the fiscal year, and shall transfer any postal funding surplus to the United States Postal Service within 10 days after a request by the Postmaster General.

   Struck: "(C) For each of fiscal years 2011, 2012, and 2013, if the amount computed under paragraph (1)(B) is less than zero, a portion of the postal funding surplus for the fiscal year shall be used by the United States Postal Service for the cost of providing to employees of the United States Postal Service who voluntarily separate from service before October 1, 2014--

   Struck: "(i) voluntary separation incentive payments (including payments to employees who retire under section 8336(d)(2) or 8414(b)(1)(B) before October 1, 2014) that may not exceed the maximum amount provided under section 3523(b)(3)(B) for any employee; and

   Struck: "(ii) retirement service credits, as authorized under section 8332(p) or 8411(m).

   Struck: "(D) Any postal funding surplus for a fiscal year not expended under subparagraph (C) may be used by the United States Postal Service for the purposes of--

   Struck: "(i) repaying any obligation issued under section 2005 of title 39; or

   Struck: "(ii) making required payments to--

   Struck: "(I) the Employees' Compensation Fund established under section 8147;

   Struck: "(II) the Postal Service Retiree Health Benefits Fund established under section 8909a;

   Struck: "(III) the Employees Health Benefits Fund established under section 8909; or

   Struck: "(IV) the Civil Service Retirement and Disability Fund.".

   Struck: SEC. 102. ADDITIONAL SERVICE CREDIT.

   Struck: (a) Civil Service Retirement System.--Section 8332 of title 5, United States Code, is amended by adding at the end the following:

   Struck: "(p)(1)(A) For an employee of the United States Postal Service who is covered under this subchapter and voluntarily separates from service before October 1, 2014, at the direction of the United States Postal Service, the Office shall add not more than 1 year (as specified by the United States Postal Service) to the total creditable service of the employee for purposes of determining entitlement to and computing the amount of an annuity under this subchapter (except for a disability annuity under section 8337).

   Struck: "(B) An employee who receives additional creditable service under this paragraph may not receive a voluntary separation incentive payment from the United States Postal Service.

   Struck: "(2)(A) Subject to subparagraph (B), and notwithstanding any other provision of law, no deduction, deposit, or contribution shall be required for service credited under this subsection.

   Struck: "(B) The actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from this subsection shall be included in the amount calculated under section 8348(h)(1)(A).".

   Struck: (b) Federal Employees Retirement System.--Section 8411 of title 5, United States Code, is amended by adding at the end the following:

   Struck: "(m)(1)(A) For an employee of the United States Postal Service who is covered under this chapter and voluntarily separates from service before October 1, 2014, at the direction of the United States Postal Service, the Office shall add not more than 2 years (as specified by the United States Postal Service) to the total creditable service of the employee for purposes of determining entitlement to and computing the amount of an annuity under this chapter (except for a disability annuity under subchapter V of that chapter).

   Struck: "(B) An employee who receives additional creditable service under this paragraph may not receive a voluntary separation incentive payment from the United States Postal Service.

   Struck: "(2)(A) Subject to subparagraph (B), and notwithstanding any other provision of law, no deduction, deposit, or contribution shall be required for service credited under this subsection.

   Struck: "(B) The actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from this subsection shall be included in the amount calculated under section 8423(b)(1)(B).".

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

   Struck: (a) Contributions.--Section 8906(g)(2)(A) of title 5, United States Code, is amended by striking "through September 30, 2016, be paid by the United States Postal Service, and thereafter shall" and inserting "after the date of enactment of the 21st Century Postal Service Act of 2012".

   Struck: (b) Postal Service Retiree Health Benefits Fund.--Section 8909a of title 5, United States Code, is amended--

   Struck: (1) in subsection (d)--

   Struck: (A) in paragraph (2)(B)--

   Struck: (i) by striking "2017" and inserting "2012"; and

   Struck: (ii) by inserting after "later, of" the following: "80 percent of"; and

   Struck: (B) in paragraph (3)--

   Struck: (i) in subparagraph (A)--

   Struck: (I) in clause (iii), by adding "and" at the end;

   Struck: (II) in clause (iv), by striking the semicolon at the end and inserting a period; and

   Struck: (III) by striking clauses (v) through (x); and

   Struck: (ii) in subparagraph (B), by striking "2017" and inserting "2012"; and

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

   Struck: "(e) Subsections (a) through (d) shall be subject to section 104 of the 21st Century Postal Service Act of 2012.".

   Struck: SEC. 104. POSTAL SERVICE HEALTH BENEFITS PROGRAM.

   Struck: (a) Definitions.--In this section--

   Struck: (1) the term "covered employee" means an employee of the Postal Service who is represented by a bargaining representative recognized under section 1203 of title 39, United States Code;

   Struck: (2) the term "Federal Employee Health Benefits Program" means the health benefits program under chapter 89 of title 5, United States Code; and

   Struck: (3) the term "Postal Service Health Benefits Program" means the health benefits program that may be agreed to under subsection (b)(1).

   Struck: (b) Collective Bargaining.--

   Struck: (1) In general.--Consistent with section 1005(f) of title 39, United States Code, the Postal Service may negotiate jointly with all bargaining representatives recognized under section 1203 of title 39, United States Code, and enter into a joint collective bargaining agreement with those bargaining representatives to establish the Postal Service Health Benefits Program that satisfies the conditions under subsection (c). The Postal Service and the bargaining representatives shall negotiate in consultation with the Director of the Office of Personnel Management.

   Struck: (2) Consultation with supervisory and managerial personnel.--In the course of negotiations under paragraph (1), the Postal Service shall consult with each of the organizations of supervisory and other managerial personnel that are recognized under section 1004 of title 39, United States Code, concerning the views of the personnel represented by each of those organizations.

   Struck: (3) Arbitration limitation.--Notwithstanding chapter 12 of title 39, United States Code, there shall not be arbitration of any dispute in the negotiations under this subsection.

   Struck: (4) Time limitation.--The authority under this subsection shall extend until September 30, 2012.

   Struck: (c) Postal Service Health Benefits Program.--The Postal Service Health Benefits Program--

   Struck: (1) shall--

   Struck: (A) be available for participation by all covered employees;

   Struck: (B) be available for participation by any officer or employee of the Postal Service who is not a covered employee, at the option solely of that officer or employee;

   Struck: (C) provide adequate and appropriate health benefits;

   Struck: (D) be administered in a manner determined in a joint agreement reached under subsection (b); and

   Struck: (E) provide for transition of coverage under the Federal Employee Health Benefits Program of covered employees to coverage under the Postal Service Health Benefits Program on January 1, 2013;

   Struck: (2) may provide dental benefits; and

   Struck: (3) may provide vision benefits.

   Struck: (d) Agreement and Implementation.--If a joint agreement is reached under subsection (b)--

   Struck: (1) the Postal Service shall implement the Postal Service Health Benefits Program;

   Struck: (2) the Postal Service Health Benefits Program shall constitute an agreement between the collective bargaining representatives and the Postal Service for purposes of section 1005(f) of title 39, United States Code; and

   Struck: (3) covered employees may not participate as employees in the Federal Employees Health Benefits Program.

   Struck: (e) Government Plan.--The Postal Service Health Benefits Program shall be a government plan as that term is defined under section 3(32) of Employee Retirement Income Security Act of 1974 (29 U.S.C. 1002(32)).

   Struck: (f) Report.--Not later than June 30, 2013, the Postal Service shall submit a report to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives that--

   Struck: (1) reports on the implementation of this section; and

   Struck: (2) requests any additional statutory authority that the Postal Service determines is necessary to carry out the purposes of this section.

   Struck: SEC. 105. ARBITRATION; LABOR DISPUTES.

   Struck: Section 1207(c)(2) of title 39, United States Code, is amended--

   Struck: (1) by inserting "(A)" after "(2)";

   Struck: (2) by striking the last sentence and inserting "The arbitration board shall render a decision not later than 45 days after the date of its appointment."; and

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

   Struck: "(B) In rendering a decision under this paragraph, the arbitration board shall consider such relevant factors as--

   Struck: "(i) the financial condition of the Postal Service;

   Struck: "(ii) the requirements relating to pay and compensation comparability under section 1003(a); and

   Struck: "(iii) the policies of this title.".

   Struck: TITLE II--POSTAL SERVICES AND OPERATIONS

   Struck: SEC. 201. POSTAL FACILITIES.

   Struck: Section 404 of title 39, United States Code, is amended by adding after subsection (e) the following:

   Struck: "(f) Closing or Consolidation of Certain Postal Facilities.--

   Struck: "(1) Postal facility.--In this subsection, the term 'postal facility'--

   Struck: "(A) means any Postal Service facility that is primarily involved in the preparation, dispatch, or other physical processing of mail; and

   Struck: "(B) does not include--

   Struck: "(i) any post office, station, or branch; or

   Struck: "(ii) any facility used only for administrative functions.

   Struck: "(2) Area mail processing study.--

   Struck: "(A) New area mail processing studies.--After the date of enactment of this subsection, before making a determination under subsection (a)(3) as to the necessity for the closing or consolidation of any postal facility, the Postal Service shall--

   Struck: "(i) conduct an area mail processing study relating to that postal facility that includes a plan to reduce the capacity of the postal facility, but not close the postal facility;

   Struck: "(ii) publish the study on the Postal Service website; and

   Struck: "(iii) publish a notice that the study is complete and available to the public, including on the Postal Service website.

   Struck: "(B) Completed or ongoing area mail processing studies.--

   Struck: "(i) In general.--In the case of a postal facility described in clause (ii), the Postal Service shall--

   Struck: "(I) consider a plan to reduce the capacity of the postal facility, but not close the postal facility; and

   Struck: "(II) publish the results of the consideration under subclause (I) with or as an amendment to the area mail processing study relating to the postal facility.

   Struck: "(ii) Postal facilities.--A postal facility described in this clause is a postal facility for which, on or before the date of enactment of this subsection--

   Struck: "(I) an area mail processing study that does not include a plan to reduce the capacity of the postal facility, but not close the facility, has been completed or is in progress; and

   Struck: "(II) a determination as to the necessity for the closing or consolidation of the postal facility has not been made.

   Struck: "(3) Notice, public comment, and public hearing.--If the Postal Service makes a determination under subsection (a)(3) to close or consolidate a postal facility, the Postal Service shall--

   Struck: "(A) provide notice of the determination to--

   Struck: "(i) Congress; and

   Struck: "(ii) the Postal Regulatory Commission;

   Struck: "(B) provide adequate public notice of the intention of the Postal Service to close or consolidate the postal facility;

   Struck: "(C) ensure that interested persons have an opportunity to submit public comments during a 45-day period after the notice of intention is provided under subparagraph (B);

   Struck: "(D) before the 45-day period described in subparagraph (C), provide for public notice of that opportunity by--

   Struck: "(i) publication on the Postal Service website;

   Struck: "(ii) posting at the affected postal facility; and

   Struck: "(iii) advertising the date and location of the public community meeting under subparagraph (E); and

   Struck: "(E) during the 45-day period described in subparagraph (C), conduct a public community meeting that provides an opportunity for public comments to be submitted verbally or in writing.

   Struck: "(4) Further considerations.--Not earlier than 30 days after the end of the 45-day period for public comment under paragraph (3), the Postal Service, in making a determination whether or not to close or consolidate a postal facility, shall consider--

   Struck: "(A) the views presented by interested persons solicited under paragraph (3);

   Struck: "(B) the effect of the closing or consolidation on the affected community, including any disproportionate impact the closure or consolidation may have on a State, region, or locality;

   Struck: "(C) the effect of the closing or consolidation on the travel times and distances for affected customers to access services under the proposed closing or consolidation;

   Struck: "(D) the effect of the closing or consolidation on delivery times for all classes of mail;

   Struck: "(E) any characteristics of certain geographical areas, such as remoteness, broadband internet availability, and weather-related obstacles to using alternative facilities, that may result in the closing or consolidation having a unique effect; and

   Struck: "(F) any other factor the Postal Service determines is necessary.

   Struck: "(5) Justification statement.--Before the date on which the Postal Service closes or consolidates a postal facility, the Postal Service shall post on the Postal Service website a closure or consolidation justification statement that includes--

   Struck: "(A) a response to all public comments received with respect to the considerations described under paragraph (4);

   Struck: "(B) a description of the considerations made by the Postal Service under paragraph (4); and

   Struck: "(C) the actions that will be taken by the Postal Service to mitigate any negative effects identified under paragraph (4).

   Struck: "(6) Closing or consolidation of postal facilities.--

   Struck: "(A) In general.--Not earlier than the 15 days after posting and publishing the final determination and the justification statement under paragraph (6) with respect to a postal facility, the Postal Service may close or consolidate the postal facility.

   Struck: "(B) Alternative intake of mail.--If the Postal Service closes or consolidates a postal facility under subparagraph (A), the Postal Service shall make reasonable efforts to ensure continued mail receipt from customers of the closed or consolidated postal facility at the same location or at another appropriate location in close geographic proximity to the closed or consolidated postal facility.

   Struck: "(7) Postal service website.--For purposes of any notice required to be published on the Postal Service website under this subsection, the Postal Service shall ensure that the Postal Service website--

   Struck: "(A) is updated routinely; and

   Struck: "(B) provides any person, at the option of the person, the opportunity to receive relevant updates by electronic mail.

   Struck: "(8) Protection of certain information.--Nothing in this subsection may be construed to require the Postal Service to disclose--

   Struck: "(A) any proprietary data, including any reference or citation to proprietary data; and

   Struck: "(B) any information relating to the security of a postal facility.".

   Struck: SEC. 202. ADDITIONAL POSTAL SERVICE PLANNING.

   Struck: Section 302(d) of the Postal Accountability and Enhancement Act of 2006 (39 U.S.C. 3691 note) is amended--

   Struck: (1) in paragraph (8), by striking the period at the end and inserting "; and";

   Struck: (2) by redesignating paragraphs (1) through (8) as subparagraphs (A) through (H), respectively, and adjusting the margins accordingly;

   Struck: (3) in the matter preceding subparagraph (A), as so redesignated, by striking "shall include" and inserting the following: "shall--

   Struck: "(1) include"; and

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

   Struck: "(2) where possible, provide for an improvement in customer access to postal services;

   Struck: "(3) consider the impact of any decisions by the Postal Service relating to the implementation of the plan on small communities and rural areas; and

   Struck: "(4) ensure that--

   Struck: "(A) small communities and rural areas continue to receive regular and effective access to retail postal services after implementation of the plan; and

   Struck: "(B) the Postal Service solicits community input in accordance with applicable provisions of Federal law.".

   Struck: SEC. 203. AREA AND DISTRICT OFFICE STRUCTURE.

   Struck: (a) Plan Required.--Not later than 1 year after the date of enactment of this Act, the Postal Service shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Governmental Reform of the House of Representatives--

   Struck: (1) a comprehensive strategic plan to govern decisions relating to area and district office structure that considers efficiency, costs, redundancies, mail volume, technological advancements, operational considerations, and other issues that may be relevant to establishing an effective area and district office structure; and

   Struck: (2) a 10-year plan, including a timetable, that provides for consolidation of area and district offices wherever the Postal Service determines a consolidation would--

   Struck: (A) be cost effective; and

   Struck: (B) not substantially and adversely affect the operations of the Postal Service.

   Struck: (b) Consolidation.--Beginning not later than 1 year after the date of enactment of this Act, the Postal Service shall, consistent with the plans required under and the criteria described in subsection (a)--

   Struck: (1) consolidate district offices that are located within 50 miles of each other;

   Struck: (2) consolidate area and district offices that have less than the mean mail volume and number of work hours for all area and district offices; and

   Struck: (3) relocate area offices to headquarters.

   Struck: (c) Updates.--The Postal Service shall update the plans required under subsection (a) not less frequently than once every 5 years.

   Struck: SEC. 204. POST OFFICES; RETAIL SERVICE STANDARDS.

   Struck: (a) Closing Post Offices.--Section 404 of title 39, United States Code, is amended--

   Struck: (1) by striking "(d)(1)" and all that follows through "present their views." and inserting the following:

   Struck: "(d)(1) The Postal Service, prior to making a determination under subsection (a)(3) of this section as to the necessity for the closing or consolidation of any post office, shall--

   Struck: "(A) consider whether--

   Struck: "(i) to close the post office or consolidate the post office and another post office located within a reasonable distance;

   Struck: "(ii) instead of closing or consolidating the post office--

   Struck: "(I) to reduce the number of hours a day that the post office operates; or

   Struck: "(II) to continue operating the post office for the same number of hours a day;

   Struck: "(iii) to procure a contract providing full, or less than full, retail services in the community served by the post office; or

   Struck: "(iv) to provide postal services to the community served by the post office through a rural carrier;

   Struck: "(B) provide postal customers served by the post office an opportunity to participate in a nonbinding survey conducted by mail on a preference for an option described in subparagraph (A); and

   Struck: "(C) if the Postal Service determines to close or consolidate the post office, provide adequate notice of its intention to close or consolidate such post office at least 60 days prior to the proposed date of such closing or consolidation to persons served by such post office to ensure that such persons will have an opportunity to present their views."; and

   Struck: (2) in subsection (d)(5), in the first sentence--

   Struck: (A) by inserting ", station, or branch" after "post office";

   Struck: (B) by inserting ", station, or branch" after "such office"; and

   Struck: (C) by striking "under paragraph (3)".

   Struck: (b) Retail Service Standards.--

   Struck: (1) Definition.--In this subsection, the term "retail postal service" means service that allows a postal customer to--

   Struck: (A) purchase postage;

   Struck: (B) enter packages into the mail; and

   Struck: (C) procure other services offered by the Postal Service.

   Struck: (2) Establishment.--Not later than 6 months after the date of enactment of this Act, the Postal Service shall exercise its authority under section 3691 of title 39, United States Code, to establish service standards for market-dominant products in order to guarantee customers of the Postal Service regular and effective access to retail postal services nationwide (including in territories and possessions of the United States) on a reasonable basis.

   Struck: (3) Contents.--The service standards established under paragraph (2) shall--

   Struck: (A) be consistent with--

   Struck: (i) the obligations of the Postal Service under section 101(b) of title 39, United States Code; and

   Struck: (ii) the contents of the plan developed under section 302 of the Postal Accountability and Enhancement Act of 2006 (39 U.S.C. 3691 note), as amended by section 202 of this Act; and

   Struck: (B) take into account factors including--

   Struck: (i) geography, including the establishment of standards for the proximity of retail postal services to postal customers, including a consideration of the reasonable maximum time a postal customer should expect to travel to access a postal retail location;

   Struck: (ii) population, including population density, demographic factors such as the age and disability status of individuals in the area to be served by a location providing postal retail services, and other factors that may impact the ability of postal customers, including businesses, to travel to a postal retail location;

   Struck: (iii) the feasibility of offering retail access to postal services in addition to post offices, as described in section 302(d) of the Postal Accountability and Enhancement Act of 2006 (39 U.S.C. 3691 note);

   Struck: (iv) the requirement that the Postal Service serve remote areas and communities with transportation challenges, including communities in which the effects of inclement weather or other natural conditions might obstruct or otherwise impede access to retail postal services; and

   Struck: (v) the ability of postal customers to access retail postal services in areas that were served by a post office that was closed or consolidated during the 1 year period ending on the date of enactment of this Act.

   Struck: (c) Prohibition on Closing Post Offices.--Notwithstanding section 404(d) of title 39, United States Code, during the period beginning on the date of enactment of this Act and ending on the date on which the Postal Service establishes the service standards under subsection (b), the Postal Service may not close a post office, except as required for the immediate protection of health and safety.

   Struck: SEC. 205. CONVERSION OF DOOR DELIVERY POINTS.

   Struck: (a) In General.--Subchapter VII of chapter 36 of title 39, United States Code, is amended by adding at the end the following:

   Struck: "Sec. 3692. Conversion of door delivery points

   Struck: "(a) Definitions.--In this section, the following definitions shall apply:

   Struck: "(1) Centralized delivery point.--The term 'centralized delivery point' means a group or cluster of mail receptacles at 1 delivery point that is within reasonable proximity of the street address associated with the delivery point.

   Struck: "(2) Curbline delivery point.--The term 'curbline delivery point' means a delivery point that is--

   Struck: "(A) adjacent to the street address associated with the delivery point; and

   Struck: "(B) accessible by vehicle on a street that is not a private driveway.

   Struck: "(3) Door delivery point.--The term 'door delivery point' means a delivery point at a door of the structure at a street address.

   Struck: "(4) Sidewalk delivery point.--The term 'sidewalk delivery point' means a delivery point on a sidewalk adjacent to the street address associated with the delivery point.

   Struck: "(b) Conversion.--Except as provided in subsection (c), and in accordance with the profitability plan required under section 401 and standards established by the Postal Service, the Postal Service is authorized to, to the maximum extent feasible, convert door delivery points to--

   Struck: "(1) curbline delivery points;

   Struck: "(2) sidewalk delivery points; or

   Struck: "(3) centralized delivery points.

   Struck: "(c) Exceptions.--

   Struck: "(1) Continued door delivery.--The Postal Service may allow for the continuation of door delivery due to--

   Struck: "(A) a physical hardship of a customer;

   Struck: "(B) weather, in a geographic area where snow removal efforts could obstruct access to mailboxes near a road;

   Struck: "(C) circumstances in an urban area that preclude efficient use of curbline delivery points;

   Struck: "(D) other exceptional circumstances, as determined in accordance with regulations issued by the Postal Service; or

   Struck: "(E) other circumstances in which the Postal Service determines that alternatives to door delivery would not be practical or cost effective.

   Struck: "(2) New door delivery points.--The Postal Service may provide door delivery to a new delivery point in a delivery area that received door delivery on the day before the date of enactment of this section, if the delivery point is established before the delivery area is converted from door delivery under subsection (b).

   Struck: "(d) Solicitation of Comments.--The Postal Service shall establish procedures to solicit, consider, and respond to input from individuals affected by a conversion under this section.

   Struck: "(e) Review.--Subchapter V of this chapter shall not apply with respect to any action taken by the Postal Service under this section.

   Struck: "(f) Report.--Not later than 60 days after the end of each fiscal year through fiscal year 2015, the Postal Service shall submit to Congress and the Inspector General of the Postal Service a report on the implementation of this section during the preceding fiscal year that--

   Struck: "(1) includes the number of door delivery points--

   Struck: "(A) that existed at the end of the fiscal year preceding the preceding fiscal year;

   Struck: "(B) that existed at the end of the preceding fiscal year;

   Struck: "(C) that, during the preceding fiscal year, converted to--

   Struck: "(i) curbline delivery points or sidewalk delivery points;

   Struck: "(ii) centralized delivery points; and

   Struck: "(iii) any other type of delivery point; and

   Struck: "(D) for which door delivery was continued under subsection (c)(1);

   Struck: "(2) estimates any cost savings, revenue loss, or decline in the value of mail resulting from the conversions from door delivery that occurred during the preceding fiscal year;

   Struck: "(3) describes the progress of the Postal Service toward achieving the conversions authorized under subsection (b); and

   Struck: "(4) provides such additional information as the Postal Service considers appropriate.".

   Struck: (b) Clerical Amendment.--The table of sections for subchapter VII of chapter 36 of title 39, United States Code, is amended by adding at the end the following:

   Struck: "3692. Conversion of door delivery points.".

   Struck: SEC. 206. LIMITATIONS ON CHANGES TO MAIL DELIVERY SCHEDULE.

   Struck: (a) Limitation on Change in Schedule.--Notwithstanding any other provision of law--

   Struck: (1) the Postal Service may not establish a general, nationwide delivery schedule of 5 or fewer days per week to street addresses under the authority of the Postal Service under title 39, United States Code, earlier than the date that is 24 months after the date of enactment of this Act; and

   Struck: (2) on or after the date that is 24 months after the date of enactment of this Act, the Postal Service may establish a general, nationwide 5-day-per-week delivery schedule to street addresses under the authority of the Postal Service under section 3691 of title 39, United States Code, only in accordance with the requirements and limitations under this section.

   Struck: (b) Preconditions.--If the Postal Service intends to establish a change in delivery schedule under subsection (a)(2), the Postal Service shall--

   Struck: (1) identify customers and communities for whom the change may have a disproportionate, negative impact, including the customers identified as "particularly affected" in the Advisory Opinion on Elimination of Saturday Delivery issued by the Commission on March 24, 2011;

   Struck: (2) develop, to the maximum extent possible, measures to ameliorate any disproportionate, negative impact the change would have on customers and communities identified under paragraph (1), including, where appropriate, providing or expanding access to mailboxes for periodical mailers on days on which the Postal Service does not provide delivery;

   Struck: (3) implement measures to increase revenue and reduce costs, including the measures authorized under the amendments made by sections 101, 102, 103, 205, and 209 of this Act;

   Struck: (4) evaluate whether any increase in revenue or reduction in costs resulting from the measures implemented under paragraph (3) are sufficient to allow the Postal Service, without implementing a change in delivery schedule under subsection (a), to--

   Struck: (A) become profitable by fiscal year 2015; and

   Struck: (B) achieve long-term financial solvency; and

   Struck: (5) not earlier than 15 months after the date of enactment of this Act and not later than 9 months before the effective date proposed by the Postal Service for the change, submit a report on the steps the Postal Service has taken to carry out this subsection to--

   Struck: (A) the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives;

   Struck: (B) the Comptroller General of the United States; and

   Struck: (C) the Commission.

   Struck: (c) Review.--

   Struck: (1) Government accountability office.--Not later than 3 months after the date on which the Postal Service submits a report under subsection (b)(5), the Comptroller General shall submit to the Commission and to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives a report that contains findings relating to each of the following:

   Struck: (A) Whether the Postal Service has adequately complied with subsection (b)(3), taking into consideration the statutory authority of and limitations on the Postal Service.

   Struck: (B) The accuracy of any statement by the Postal Service that the measures implemented under subsection (b)(3) have increased revenues or reduced costs, and the accuracy of any projection by the Postal Service relating to increased revenue or reduced costs resulting from the measures implemented under subsection (b)(3).

   Struck: (C) The adequacy and methodological soundness of any evaluation conducted by the Postal Service under subsection (b)(4) that led the Postal Service to assert the necessity of a change in delivery schedule under subsection (a)(2).

   Struck: (D) Whether, based on an analysis of the measures implemented by the Postal Service to increase revenues and reduce costs, projections of increased revenue and cost savings, and the details of the profitability plan required under section 401, a change in delivery schedule is necessary to allow the Postal Service to--

   Struck: (i) become profitable by fiscal year 2015; and

   Struck: (ii) achieve long-term financial solvency.

   Struck: (2) Postal regulatory commission.--

   Struck: (A) Request.--Not later than 6 months before the proposed effective date of a change in delivery schedule under subsection (a), the Postal Service shall submit to the Commission a request for an advisory opinion relating to the change.

   Struck: (B) Advisory opinion.--

   Struck: (i) In general.--The Commission shall--

   Struck: (I) issue an advisory opinion with respect to a request under subparagraph (A), in accordance with the time limits for the issuance of advisory opinions under section 3661(b)(2) of title 39, United States Code, as amended by this Act; and

   Struck: (II) submit the advisory opinion to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives.

   Struck: (ii) Required determinations.--An advisory opinion under clause (i) shall determine--

   Struck: (I) whether the measures developed under subsection (b)(2) ameliorate any disproportionate, negative impact that a change in schedule may have on customers and communities identified under subsection (b)(1); and

   Struck: (II) based on the report submitted by the Comptroller General under paragraph (1)--

   Struck: (aa) whether the Postal Service has implemented measures to reduce operating losses as required under subsection (b)(3);

   Struck: (bb) whether the implementation of the measures described in item (aa) has increased revenues or reduced costs, or is projected to further increase revenues or reduce costs in the future; and

   Struck: (cc) whether a change in schedule under subsection (a)(2) is necessary to allow the Postal Service to--

   Struck: (AA) become profitable by fiscal year 2015; and

   Struck: (BB) achieve long- term financial solvency.

   Struck: (3) Prohibition on implementation of change in schedule.-- The Postal Service may not implement a change in delivery schedule under subsection (a)(2)--

   Struck: (A) before the date on which the Comptroller General submits the report required under paragraph (1); and

   Struck: (B) unless the Commission determines under paragraph (2)(B)(ii)(II)(cc) that the Comptroller General has concluded that the change is necessary to allow the Postal Service to become profitable by fiscal year 2015 and to achieve long-term financial solvency, without regard to whether the Commission determines that the change is advisable.

   Struck: (d) Additional Limitations.--

   Struck: (1) Rules of construction.--Nothing in this subsection shall be construed to--

   Struck: (A) authorize the reduction, or require an increase, in delivery frequency for any route for which the Postal Service provided delivery on fewer than 6 days per week on the date of enactment of this Act;

   Struck: (B) authorize any change in--

   Struck: (i) the days and times that postal retail service or any mail acceptance is available at postal retail facilities or processing facilities; or

   Struck: (ii) the locations at which postal retail service or mail acceptance occurs at postal retail facilities or processing facilities;

   Struck: (C) authorize any change in the frequency of delivery to a post office box;

   Struck: (D) prohibit the collection or delivery of a competitive mail product on a weekend, a recognized Federal holiday, or any other specific day of the week; or

   Struck: (E) prohibit the Postal Service from exercising its authority to make changes to processing or retail networks.

   Struck: (2) Prohibition on consecutive days without mail delivery.--The Postal Service shall ensure that, under any change in schedule under subsection (a)(2), at no time shall there be more than 2 consecutive days without mail delivery to street addresses, including recognized Federal holidays.

   Struck: SEC. 207. TIME LIMITS FOR CONSIDERATION OF SERVICE CHANGES.

   Struck: Section 3661 of title 39, United States Code, is amended by striking subsections (b) and (c) and inserting the following:

   Struck: "(b) Proposed Changes for Market-dominant Products.--

   Struck: "(1) Submission of proposal.--If the Postal Service determines that there should be a change in the nature of postal services relating to market-dominant products that will generally affect service on a nationwide or substantially nationwide basis, the Postal Service shall submit a proposal to the Postal Regulatory Commission requesting an advisory opinion on the change.

   Struck: "(2) Advisory opinion.--Upon receipt of a proposal under paragraph (1), the Postal Regulatory Commission shall--

   Struck: "(A) provide an opportunity for public comment on the proposal; and

   Struck: "(B) issue an advisory opinion not later than--

   Struck: "(i) 90 days after the date on which the Postal Regulatory Commission receives the proposal; or

   Struck: "(ii) a date that the Postal Regulatory Commission and the Postal Service may, not later than 1 week after the date on which the Postal Regulatory Commission receives the proposal, determine jointly.

   Struck: "(3) Response to opinion.--The Postal Service shall submit to the President and to Congress a response to an advisory opinion issued under paragraph (2) that includes--

   Struck: "(A) a statement of whether the Postal Service plans to modify the proposal to address any concerns or implement any recommendations made by the Commission; and

   Struck: "(B) for any concern that the Postal Service determines not to address and any recommendation that the Postal Service determines not to implement, the reasons for the determination.

   Struck: "(4) Action on proposal.--The Postal Service may take action regarding a proposal submitted under paragraph (1)--

   Struck: "(A) on or after the date that is 30 days after the date on which the Postal Service submits the response required under paragraph (3);

   Struck: "(B) on or after a date that the Postal Regulatory Commission and the Postal Service may, not later than 1 week after the date on which the Postal Regulatory Commission receives a proposal under paragraph (2), determine jointly; or

   Struck: "(C) after the date described in paragraph (2)(B), if--

   Struck: "(i) the Postal Regulatory Commission fails to issue an advisory opinion on or before the date described in paragraph (2)(B); and

   Struck: "(ii) the action is not otherwise prohibited under Federal law.

   Struck: "(5) Modification of timeline.--At any time, the Postal Service and the Postal Regulatory Commission may jointly redetermine a date determined under paragraph (2)(B)(ii) or (4)(B).".

   Struck: SEC. 208. PUBLIC PROCEDURES FOR SIGNIFICANT CHANGES TO MAILING SPECIFICATIONS.

   Struck: (a) Notice and Opportunity for Comment Required.--Effective on the date on which the Postal Service issues a final rule under subsection (c), before making a change to mailing specifications that could pose a significant burden to the customers of the Postal Service and that is not reviewed by the Commission, the Postal Service shall--

   Struck: (1) publish a notice of the proposed change to the specification in the Federal Register;

   Struck: (2) provide an opportunity for the submission of written comments concerning the proposed change for a period of not less than 30 days;

   Struck: (3) after considering any comments submitted under paragraph (2) and making any modifications to the proposed change that the Postal Service determines are necessary, publish--

   Struck: (A) the final change to the specification in the Federal Register;

   Struck: (B) responses to any comments submitted under paragraph (2); and

   Struck: (C) an analysis of the financial impact that the proposed change would have on--

   Struck: (i) the Postal Service; and

   Struck: (ii) the customers of the Postal Service that would be affected by the proposed change; and

   Struck: (4) establish an effective date for the change to mailing specifications that is not earlier than 30 days after the date on which the Postal Service publishes the final change under paragraph (3).

   Struck: (b) Exception for Good Cause.--If the Postal Service determines that there is an urgent and compelling need for a change to a mailing specification described in subsection (a) in order to avoid demonstrable harm to the operations of the Postal Service or to the public interest, the Postal Service may--

   Struck: (1) change the mailing specifications by--

   Struck: (A) issuing an interim final rule that--

   Struck: (i) includes a finding by the Postal Service that there is good cause for the interim final rule;

   Struck: (ii) provides an opportunity for the submission of written comments on the interim final rule for a period of not less than 30 days; and

   Struck: (iii) establishes an effective date for the interim final rule that is not earlier than 30 days after the date on which the interim final rule is issued; and

   Struck: (B) publishing in the Federal Register a response to any comments submitted under subparagraph (A)(ii); and

   Struck: (2) waive the requirement under paragraph (1)(A)(iii) or subsection (a)(4).

   Struck: (c) Rules Relating to Notice and Comment.--

   Struck: (1) In general.--Not later than 180 days after the date of enactment of this Act, the Postal Service shall issue rules governing the provision of notice and opportunity for comment for changes in mailing specifications under subsection (a).

   Struck: (2) Rules.--In issuing the rules required under paragraph (1), the Postal Service shall--

   Struck: (A) publish a notice of proposed rulemaking in the Federal Register that includes proposed definitions of the terms "mailing specifications" and "significant burden";

   Struck: (B) provide an opportunity for the submission of written comments concerning the proposed change for a period of not less than 30 days; and

   Struck: (C) publish--

   Struck: (i) the rule in final form in the Federal Register; and

   Struck: (ii) responses to the comments submitted under subparagraph (B).

   Struck: SEC. 209. NONPOSTAL PRODUCTS AND SERVICES.

   Struck: (a) In General.--Section 404 of title 39, United States Code, is amended--

   Struck: (1) in subsection (a)--

   Struck: (A) by redesignating paragraphs (6) through (8) as paragraphs (7) through (9), respectively; and

   Struck: (B) by inserting after paragraph (5) the following:

   Struck: "(6) after the date of enactment of the 21st Century Postal Service Act of 2012, and except as provided in subsection (e), to provide other services that are not postal services, after the Postal Regulatory Commission--

   Struck: "(A) makes a determination that the provision of such services--

   Struck: "(i) uses the processing, transportation, delivery, retail network, or technology of the Postal Service;

   Struck: "(ii) is consistent with the public interest and a demonstrated or potential public demand for--

   Struck: "(I) the Postal Service to provide the services instead of another entity providing the services; or

   Struck: "(II) the Postal Service to provide the services in addition to another entity providing the services;

   Struck: "(iii) would not create unfair competition with the private sector; and

   Struck: "(iv) has the potential to improve the net financial position of the Postal Service, based on a market analysis provided to the Postal Regulatory Commission by the Postal Service; and

   Struck: "(B) for services that the Postal Regulatory Commission determines meet the criteria under subparagraph (A), classifies each such service as a market-dominant product, competitive product, or experimental product, as required under chapter 36 of title 39, United States Code;"; and

   Struck: (2) in subsection (e)(2), by striking "Nothing" and all that follows through "except that the" and inserting "The".

   Struck: (b) Market Analysis.--During the 5-year period beginning on the date of enactment of this Act, the Postal Service shall submit a copy of any market analysis provided to the Commission under section 404(a)(6)(A)(iv) of title 39, United States Code, as amended by this section, to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform of the House of Representatives.

   Struck: TITLE III--FEDERAL EMPLOYEES' COMPENSATION ACT

   Struck: SEC. 301. SHORT TITLE; REFERENCES.

   Inserted: Sec. 103. Commission on Postal Reorganization.

   Inserted: Sec. 104. Recommendations for closures and consolidations.

   Inserted: Sec. 105. Implementation of closures and consolidations.

   Inserted: Sec. 106. Congressional consideration of final CPR reports.

   Inserted: Sec. 107. Nonappealability of decisions.

   Inserted: Sec. 108. Rules of construction.

   Inserted: Sec. 109. GAO study and report.

   Inserted: Subtitle B--Other Provisions

   Inserted: Sec. 111. Frequency of mail delivery.

   Inserted: Sec. 112. Efficient and flexible universal postal service.

   Inserted: Sec. 113. Enhanced reporting on Postal Service efficiency.

   Inserted: Sec. 114. Applicability of procedures relating to closures and consolidations.

   Show 683 more inserted paragraphsShow less

   Inserted: TITLE II--POSTAL SERVICE FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY

   Inserted: Subtitle A--Establishment and Organization

   Inserted: Sec. 201. Purposes.

   Inserted: Sec. 202. Establishment of the Authority.

   Inserted: Sec. 203. Membership and qualification requirements.

   Inserted: Sec. 204. Organization.

   Inserted: Sec. 205. Executive Director and staff.

   Inserted: Sec. 206. Funding.

   Inserted: Subtitle B--Powers of the Authority

   Inserted: Sec. 211. Powers.

   Inserted: Sec. 212. Exemption from liability for claims.

   Inserted: Sec. 213. Treatment of actions arising under this title.

   Inserted: Sec. 214. Delivery point modernization.

   Inserted: Subtitle C--Establishment and Enforcement of Financial Plan and Budget for the Postal Service

   Inserted: Sec. 221. Development of financial plan and budget for the Postal Service.

   Inserted: Sec. 222. Process for submission and approval of financial plan and budget.

   Inserted: Sec. 223. Responsibilities of the Authority.

   Inserted: Sec. 224. Effect of finding noncompliance with financial plan and budget.

   Inserted: Sec. 225. Recommendations regarding financial stability, etc.

   Inserted: Sec. 226. Special rules for fiscal year in which control period commences.

   Inserted: Sec. 227. Assistance in achieving financial stability, etc.

   Inserted: Sec. 228. Obtaining reports.

   Inserted: Sec. 229. Reports and comments.

   Inserted: Subtitle D--Termination of a Control Period

   Inserted: Sec. 231. Termination of control period, etc.

   Inserted: Sec. 232. Congressional consideration of recommendation.

   Inserted: TITLE III--POSTAL SERVICE WORKFORCE

   Inserted: Sec. 301. Modifications relating to determination of pay comparability.

   Inserted: Sec. 302. Limitation on postal contributions under FEGLI and FEHBP.

   Inserted: Sec. 303. Repeal of provision relating to overall value of fringe benefits.

   Inserted: Sec. 304. Applicability of reduction-in-force procedures.

   Inserted: Sec. 305. Modifications relating to collective bargaining.

   Inserted: TITLE IV--FEDERAL EMPLOYEE'S COMPENSATION ACT

   Inserted: Sec. 401. Short title; references.

   Inserted: Sec. 402. Federal workers compensation reforms for retirement-age employees.

   Inserted: Sec. 403. Augmented compensation for dependents.

   Inserted: Sec. 404. Schedule compensation payments.

   Inserted: Sec. 405. Vocational rehabilitation.

   Inserted: Sec. 406. Reporting requirements.

   Inserted: Sec. 407. Disability management review; independent medical examinations.

   Inserted: Sec. 408. Waiting period.

   Inserted: Sec. 409. Election of benefits.

   Inserted: Sec. 410. Sanction for noncooperation with field nurses.

   Inserted: Sec. 411. Subrogation of continuation of pay.

   Inserted: Sec. 412. Social Security earnings information.

   Inserted: Sec. 413. Amount of compensation.

   Inserted: Sec. 414. Technical and conforming amendments.

   Inserted: Sec. 415. Regulations.

   Inserted: TITLE V--POSTAL SERVICE REVENUE

   Inserted: Sec. 501. Adequacy, efficiency, and fairness of postal rates.

   Inserted: Sec. 502. Repeal of rate preferences for qualified political committees.

   Inserted: Sec. 503. Streamlined review of qualifying service agreements for competitive products.

   Inserted: Sec. 504. Submission of service agreements for streamlined review.

   Inserted: Sec. 505. Transparency and accountability for service agreements.

   Inserted: Sec. 506. Nonpostal services.

   Inserted: Sec. 507. Reimbursement of Alaska bypass mail costs.

   Inserted: Sec. 508. Appropriations modernization.

   Inserted: Sec. 509. Retiree health care benefit payment deferral.

   Inserted: TITLE VI--POSTAL CONTRACTING REFORM

   Inserted: Sec. 601. Contracting provisions.

   Inserted: Sec. 602. Technical amendment to definition.

   Inserted: (c) References.--Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 39, United States Code.

   Inserted: TITLE I--POSTAL SERVICE MODERNIZATION

   Inserted: Subtitle A--Commission on Postal Reorganization SEC. 101. SHORT TITLE.

   Inserted: This subtitle may be cited as the "Commission on Postal Reorganization Act" or the "CPR Act".

   Inserted: SEC. 102. DEFINITIONS.

   Inserted: For purposes of this title--

   Inserted: (1) the term "Postal Service" means the United States Postal Service;

   Inserted: (2) the term "postal retail facility" means a post office, post office branch, post office classified station, or other facility which is operated by the Postal Service, and the primary function of which is to provide retail postal services;

   Inserted: (3) the term "mail processing facility" means a processing and distribution center, processing and distribution facility, network distribution center, or other facility which is operated by the Postal Service, and the primary function of which is to sort and process mail;

   Inserted: (4) the term "district office" means the central office of an administrative field unit with responsibility for postal operations in a designated geographic area (as defined under regulations, directives, or other guidance of the Postal Service, as in effect on June 23, 2011);

   Inserted: (5) the term "area office" means the central office of an administrative field unit with responsibility for postal operations in a designated geographic area which is comprised of designated geographic areas as referred to in paragraph (4); and

   Inserted: (6) the term "baseline year" means the fiscal year last ending before the date of the enactment of this Act.

   Inserted: SEC. 103. COMMISSION ON POSTAL REORGANIZATION.

   Inserted: (a) Establishment.--There shall be established, not later than 90 days after the date of the enactment of this Act, an independent commission to be known as the "Commission on Postal Reorganization" (hereinafter in this section referred to as the "Commission").

   Inserted: (b) Duties.--The Commission shall carry out the duties specified for it in this subtitle.

   Inserted: (c) Members.--

   Inserted: (1) In general.--The Commission shall be composed of 5 members who shall be appointed by the President, and of whom--

   Inserted: (A) 1 shall be appointed from among individuals recommended by the Speaker of the House of Representatives;

   Inserted: (B) 1 shall be appointed from among individuals recommended by the majority leader of the Senate;

   Inserted: (C) 1 shall be appointed from among individuals recommended by the minority leader of the House of Representatives;

   Inserted: (D) 1 shall be appointed from among individuals recommended by the minority leader of the Senate; and

   Inserted: (E) 1 shall be appointed from among individuals recommended by the Comptroller General.

   Inserted: (2) Qualifications.--

   Inserted: (A) In general.--Members of the Commission shall be chosen to represent the public interest generally, and shall not be representatives of specific interests using the Postal Service.

   Inserted: (B) Ineligibility.--An individual may not be appointed to serve as a member of the Commission if such individual served as an employee of the Postal Service or the Postal Regulatory Commission, or of a labor organization representing employees of the Postal Service or the Postal Regulatory Commission, during the 3-year period ending on the date of such appointment.

   Inserted: (3) Political affiliation.--Not more than 3 members of the Commission may be of the same political party.

   Inserted: (d) Terms.--Each member of the Commission shall be appointed for the life of the Commission and may be removed only for cause.

   Inserted: (e) Vacancies.--A vacancy in the Commission shall be filled in the same manner as the original appointment.

   Inserted: (f) Chairman.--The President shall, at the time of making appointments under subsection (c), designate one of the members to serve as chairman of the Commission.

   Inserted: (g) Compensation and Travel Expenses.--

   Inserted: (1) Compensation.--

   Inserted: (A) In general.--Except as provided in subparagraph (B), each member of the Commission shall be paid at a rate equal to the daily equivalent of $40,000 per year for each day (including travel time) during which the member is engaged in the actual performance of duties vested in the Commission.

   Inserted: (B) Exception.--Any member of the Commission who is a full-time officer or employee of the United States may not receive additional pay, allowances, or benefits by reason of such member's service on the Commission.

   Inserted: (2) Travel expenses.--Each member shall receive travel expenses, including per diem in lieu of subsistence, in accordance with applicable provisions of subchapter I of chapter 57 of title 5, United States Code.

   Inserted: (h) Director.--The Commission shall have a Director who shall be appointed by the Commission. The Director shall be paid at the rate of basic pay for level IV of the Executive Schedule under section 5315 of title 5, United States Code. An appointment under this subsection shall be subject to the requirements of subsection (c)(2).

   Inserted: (i) Additional Personnel.--With the approval of the Commission, the Director may appoint and fix the pay of such additional personnel as the Director considers appropriate. Such additional personnel may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and may be paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, except that an individual so appointed may not receive pay at a rate of basic pay in excess of the rate of basic pay payable to the Director. An individual appointed under this subsection shall serve at the pleasure of the Director.

   Inserted: (j) Provisions Relating to Details.--

   Inserted: (1) In general.--Upon request of the Director, the head of any Federal department or agency may detail any of the personnel of such department or agency to the Commission to assist the Commission in carrying out its duties under this subtitle. Notwithstanding any other provision of law, to provide continuity in the work of the Commission, such details may be extended beyond 1 year at the request of the Director.

   Inserted: (2) Numerical limitation.--Not more than \1/3\ of the personnel of the Commission may consist of the number of individuals on detail from the Postal Service and the Postal Regulatory Commission combined.

   Inserted: (3) Other limitations.--A person may not be detailed to the Commission from the Postal Service or the Postal Regulatory Commission if such person participated personally and substantially on any matter, within the Postal Service or the Postal Regulatory Commission, concerning the preparation of recommendations for closures or consolidations of postal facilities under this subtitle. No employee of the Postal Service or the Postal Regulatory Commission (including a detailee to the Postal Service or the Postal Regulatory Commission) may--

   Inserted: (A) prepare any report concerning the effectiveness, fitness, or efficiency of the performance, on the staff of the Commission, of any person detailed from the Postal Service or the Postal Regulatory Commission to such staff;

   Inserted: (B) review the preparation of such a report; or

   Inserted: (C) approve or disapprove such a report.

   Inserted: (k) Other Authorities.--

   Inserted: (1) Experts and consultants.--The Commission may procure by contract, to the extent funds are available, temporary or intermittent services under section 3109 of title 5, United States Code.

   Inserted: (2) Leasing, etc.--The Commission may lease space and acquire personal property to the extent funds are available.

   Inserted: (l) Authorization of Appropriations.--In order to carry out this section, there are authorized to be appropriated out of the Postal Service Fund $20,000,000, which funds shall remain available until expended.

   Inserted: (m) Financial Reporting.--

   Inserted: (1) Audit and expenditures.--The Commission shall be responsible for issuing annual financial statements and for establishing and maintaining adequate controls over its financial reporting.

   Inserted: (2) Internal audits.--The Commission shall maintain an adequate internal audit of its financial transactions.

   Inserted: (3) Annual certification.--The Commission shall obtain an annual certification for each fiscal year from an independent, certified public accounting firm of the accuracy of its financial statements.

   Inserted: (4) Comptroller general.--The accounts and operations of the Commission shall be audited by the Comptroller General and reports thereon made to the Congress to the extent and at such times as the Comptroller General may determine.

   Inserted: (n) Termination.--The Commission shall terminate 60 days after submitting its final reports under section 104(d)(3).

   Inserted: SEC. 104. RECOMMENDATIONS FOR CLOSURES AND CONSOLIDATIONS.

   Inserted: (a) Plan for the Closure or Consolidation of Postal Retail Facilities.--

   Inserted: (1) In general.--Not later than 120 days after the date of the enactment of this Act, the Postal Service, in consultation with the Postal Regulatory Commission, shall develop and submit to the Commission on Postal Reorganization a plan for the closure or consolidation of such postal retail facilities as the Postal Service considers necessary and appropriate so that the total annual costs attributable to the operation of postal retail facilities will be, for each fiscal year beginning at least 2 years after the date on which the Commission transmits to Congress its final report under subsection (d)(3)(A) relating to this subsection, at least $1,000,000,000 less than the corresponding total annual costs for the baseline year.

   Inserted: (2) Contents.--The plan shall include--

   Inserted: (A) a list of the postal retail facilities proposed for closure or consolidation under this subtitle;

   Inserted: (B) a proposed schedule under which--

   Inserted: (i) closures and consolidations of postal retail facilities would be carried out under this subtitle; and

   Inserted: (ii) all closures and consolidations of postal retail facilities under this subtitle would be completed by not later than 2 years after the date on which the Commission transmits to Congress its final report under subsection (d)(3)(A) relating to such plan;

   Inserted: (C) the estimated total annual cost savings attributable to the proposed closures and consolidations described in the plan;

   Inserted: (D) the criteria and process used to develop the information described in subparagraphs (A) and (B);

   Inserted: (E) the methodology and assumptions used to derive the estimates described in subparagraph (C); and

   Inserted: (F) any changes to the processing, transportation, delivery, or other postal operations anticipated as a result of the proposed closures and consolidations described in the plan.

   Inserted: (3) Consistency.--The methodology and assumptions used to derive the cost estimates described in paragraph (2)(C) shall be consistent with the methodology and assumptions which would have been used by the Postal Service if those closures and consolidations had instead taken effect in the baseline year.

   Inserted: (b) Plan for the Closure or Consolidation of Mail Processing Facilities.--

   Inserted: (1) In general.--Not later than 300 days after the date of the enactment of this Act, the Postal Service, in consultation with the Inspector General of the United States Postal Service, shall develop and submit to the Commission on Postal Reorganization a plan for the closure or consolidation of such mail processing facilities as the Postal Service considers necessary and appropriate so that--

   Inserted: (A) the total annual costs attributable to the operation of mail processing facilities will be, for each fiscal year beginning at least 2 years after the date on which the Commission transmits to Congress its final report under subsection (d)(3)(A) relating to this subsection, at least $2,000,000,000 less than the corresponding total annual costs for the baseline year; and

   Inserted: (B) the Postal Service has, for fiscal years beginning at least 2 years after the date on which the Commission transmits to Congress its final report under subsection (d)(3)(A) relating to this subsection, no more than 10 percent excess mail processing capacity.

   Inserted: (2) Contents.--The plan shall include--

   Inserted: (A) a list of the mail processing facilities proposed for closure or consolidation under this subtitle;

   Inserted: (B) a proposed schedule under which--

   Inserted: (i) closures and consolidations of mail processing facilities would be carried out under this subtitle; and

   Inserted: (ii) all closures and consolidations of mail processing facilities under this subtitle would be completed by not later than 2 years after the date on which the Commission transmits to Congress its final report under subsection (d)(3)(A) relating to such plan;

   Inserted: (C) the estimated total annual cost savings attributable to the proposed closures and consolidations described in the plan;

   Inserted: (D) the criteria and process used to develop the information described in subparagraphs (A) and (B);

   Inserted: (E) the methodology and assumptions used to derive the estimates described in subparagraph (C); and

   Inserted: (F) any changes to the processing, transportation, delivery, or other postal operations anticipated as a result of the proposed closures and consolidations described in the plan.

   Inserted: (3) Consistency.--The methodology and assumptions used to derive the cost estimates described in paragraph (2)(C) shall be consistent with the methodology and assumptions which would have been used by the Postal Service if those closures and consolidations had instead taken effect in the baseline year.

   Inserted: (4) Excess mail processing capacity.--The Commission shall cause to be published in the Federal Register notice of a proposed definition of "excess mail processing capacity" for purposes of this section within 120 days after the date of the enactment of this Act, and shall provide a period of 30 days for public comment on the proposed definition. Not later than 180 days after the date of the enactment of this Act, the Commission shall issue and cause to be published in the Federal Register a final definition of "excess mail processing capacity" for purposes of this section. Such definition shall include an estimate of the total amount of excess mail processing capacity in mail processing facilities as of the date of the enactment of this Act.

   Inserted: (5) Underutilized mail processing facilities.--In developing a plan under this subsection, the Postal Service may include the estimated total cost savings that would result from moving mail processing operations to any mail processing facility that, as of the date of introduction of this Act--

   Inserted: (A) is not currently used by the Postal Service; and

   Inserted: (B) is capable of processing mail to the Postal Service's standards.

   Inserted: (c) Plan for the Closure or Consolidation of Area and District Offices.--

   Inserted: (1) In general.--Not later than 300 days after the date of the enactment of this Act, the Postal Service, in consultation with the Inspector General of the United States Postal Service, shall develop and submit to the Commission on Postal Reorganization a plan for the closure or consolidation of such area and district offices as the Postal Service considers necessary and appropriate so that the combined total number of area and district offices will be, for each fiscal year beginning at least 2 years after the date on which the Commission transmits to Congress its final report under subsection (d)(3)(A) relating to this subsection, at least 30 percent less than the corresponding combined total for the baseline year.

   Inserted: (2) Contents.--The plan shall include--

   Inserted: (A) a list of the area and district offices proposed for closure or consolidation under this subtitle;

   Inserted: (B) a proposed schedule under which--

   Inserted: (i) closures and consolidations of area and district offices would be carried out under this subtitle; and

   Inserted: (ii) all closures and consolidations of area and district offices under this subtitle would be completed by not later than 2 years after the date on which the Commission transmits to Congress its final report under subsection (d)(3)(A) relating to such plan;

   Inserted: (C) the estimated total annual cost savings attributable to the proposed closures and consolidations described in the plan;

   Inserted: (D) the criteria and process used to develop the information described in subparagraphs (A) and (B);

   Inserted: (E) the methodology and assumptions used to derive the estimates described in subparagraph (C); and

   Inserted: (F) any changes to the processing, transportation, delivery, or other postal operations anticipated as a result of the proposed closures and consolidations described in the plan.

   Inserted: (3) Consistency.--The methodology and assumptions used to derive the cost estimates described in paragraph (2)(C) shall be consistent with the methodology and assumptions which would have been used by the Postal Service if those closures and consolidations had instead taken effect in the baseline year.

   Inserted: (d) Review and Recommendations of the Commission.--

   Inserted: (1) Initial reports.--

   Inserted: (A) In general.--After receiving the plan of the Postal Service under subsection (a), (b), or (c), the Commission on Postal Reorganization shall transmit to Congress and publish in the Federal Register a report under this paragraph, which shall contain the Commission's findings based on a review and analysis of such plan, together with the Commission's initial recommendations for closures and consolidations of postal facilities, mail processing facilities, or area and district offices (as the case may be).

   Inserted: (B) Explanation of changes.--The Commission shall explain and justify in its report any recommendations made by the Commission that are different from those contained in the Postal Service plan to which such report pertains.

   Inserted: (C) Deadlines.--A report of the Commission under this paragraph shall be transmitted and published, in accordance with subparagraph (A), within--

   Inserted: (i) if the report pertains to the plan under subsection (a), 60 days after the date on which the Commission receives such plan; or

   Inserted: (ii) if the report pertains to the plan under subsection (b) or (c), 90 days after the date on which the Commission receives such plan.

   Inserted: (2) Public hearings.--

   Inserted: (A) In general.--After receiving the plan of the Postal Service under subsection (a), (b), or (c), the Commission on Postal Reorganization shall conduct at least 5 public hearings on such plan. The hearings shall be conducted in geographic areas chosen so as to reflect a broadly representative range of needs and interests.

   Inserted: (B) Testimony.--All testimony before the Commission at a public hearing conducted under this paragraph shall be given under oath.

   Inserted: (C) Deadlines.--All hearings under this paragraph shall be completed within 60 days after the date as of which the Commission satisfies the requirements of paragraph (1) with respect to such plan.

   Inserted: (3) Final reports.--

   Inserted: (A) In general.--After satisfying the requirements of paragraph (2) with respect to the plan of the Postal Service under subsection (a), (b), or (c) (as the case may be), the Commission shall transmit to Congress and publish in the Federal Register a report under this paragraph containing a summary of the hearings conducted with respect to such plan, together with the Commission's final recommendations for closures and consolidations of postal facilities, mail processing facilities, or area and district offices (as the case may be).

   Inserted: (B) Approval.--Recommendations under subparagraph (A) shall not be considered to be final recommendations unless they are made with--

   Inserted: (i) except as provided in clause (ii), the concurrence of at least 4 members of the Commission; or

   Inserted: (ii) to the extent that the requirements of subsection (b)(1)(A) or (c)(1) are not met, the concurrence of all sitting members, but only if the shortfall (relative to the requirements of subsection (b)(1)(A) or (c)(1), as the case may be) does not exceed 25 percent.

   Inserted: (C) Contents.--A report under this paragraph shall include--

   Inserted: (i) the information required by paragraph (2) of subsection (a), (b), or (c) (as the case may be); and

   Inserted: (ii) a description of the operations that will be affected by the closure or consolidation and the facilities or offices which will be performing or ceasing to perform such operations as a result of such closure or consolidation.

   Inserted: (D) Deadlines.--A report of the Commission under this paragraph shall be transmitted and published, in accordance with subparagraph (A), within 60 days after the date as of which the Commission satisfies the requirements of paragraph (2) with respect to the plan involved.

   Inserted: (e) Limitation Relating to Postal Retail Facilities Identified for Closure or Consolidation.--

   Inserted: (1) Applicability.--This subsection applies to any plan of the Postal Service under subsection (a) and any report of the Commission under subsection (d) (whether initial or final) pertaining to such plan.

   Inserted: (2) Limitation.--Of the total number of postal retail facilities recommended for closure or consolidation (combined) under any plan or report to which this subsection applies, the number of such facilities that are within the K or L cost ascertainment grouping (combined) shall account for not more than 10 percent of such total number.

   Inserted: (3) References.--For purposes of this subsection--

   Inserted: (A) any reference to a "cost ascertainment grouping" shall be considered to refer to a cost ascertainment grouping as described in section 123.11 of the Postal Operations Manual (as in effect on June 23, 2011); and

   Inserted: (B) any reference to a particular category (designated by a letter) of a cost ascertainment grouping shall be considered to refer to such category, as described in such section 123.11 (as in effect on the date specified in subparagraph (A)).

   Inserted: (f) Annual Reports.--

   Inserted: (1) In general.--There shall be included in the next 5 annual reports submitted under section 2402 of title 39, United States Code, beginning with the report covering any period of time occurring after the date of enactment of this Act, the following (shown on a State-by-State basis):

   Inserted: (A) In connection with closures and consolidations taking effect in the year covered by the report, the total number of individuals separated from employment with the Postal Service, including, if separation occurs in a year other than the year in which the closing or consolidation occurs, the year in which separation occurs.

   Inserted: (B) Of the total numbers under subparagraph (A)--

   Inserted: (i) the number and percentage comprising preference eligibles or veterans; and

   Inserted: (ii) the number and percentage comprising individuals other than preference eligibles or veterans.

   Inserted: (C) Of the total numbers under subparagraph (A), the number and percentage reemployed in a position within the general commuting area of the facility or office involved (including, if reemployment occurs in a year other than the year in which the closing or consolidation occurs, the year in which reemployment occurs)--

   Inserted: (i) with the Postal Service; or

   Inserted: (ii) with an employer other than the Postal Service.

   Inserted: (D) The methodology and assumptions used to derive the estimates described in subparagraph (B).

   Inserted: (E) The criteria and process used to develop the information described in subparagraph (C).

   Inserted: (2) Definitions.--For purposes of this subsection--

   Inserted: (A) the term "preference eligible" has the meaning given such term in section 2108(3) of title 5, United States Code; and

   Inserted: (B) the term "veteran" has the meaning given such term in section 101(2) of title 38, United States Code.

   Inserted: SEC. 105. IMPLEMENTATION OF CLOSURES AND CONSOLIDATIONS.

   Inserted: (a) In General.--Subject to subsection (b), the Postal Service shall--

   Inserted: (1) close or consolidate (as the case may be) the facilities and offices recommended by the Commission in each of its final reports under section 104(d)(3); and

   Inserted: (2) carry out those closures and consolidations in accordance with the timetable recommended by the Commission in such report, except that in no event shall any such closure or consolidation be completed later than 2 years after the date on which such report is submitted to Congress.

   Inserted: (b) Congressional Disapproval.--

   Inserted: (1) In general.--The Postal Service may not carry out any closure or consolidation recommended by the Commission in a final report if a joint resolution disapproving the recommendations of the Commission is enacted, in accordance with section 106, before the earlier of--

   Inserted: (A) the end of the 30-day period beginning on the date on which the Commission transmits those recommendations to Congress under section 104(d)(3); or

   Inserted: (B) the adjournment of the Congress sine die for the session during which such report is transmitted.

   Inserted: (2) Days of session.--For purposes of paragraph (1) and subsections (a) and (c) of section 106, the days on which either House of Congress is not in session because of an adjournment of more than 7 days to a day certain shall be excluded in the computation of a period.

   Inserted: SEC. 106. CONGRESSIONAL CONSIDERATION OF FINAL CPR REPORTS.

   Inserted: (a) Terms of the Resolution.--For purposes of this subtitle, the term "joint resolution", as used with respect to a report under section 104(d)(3), means only a joint resolution--

   Inserted: (1) which is introduced within the 10-day period beginning on the date on which such report is received by Congress;

   Inserted: (2) the matter after the resolving clause of which is as follows: "That Congress disapproves the recommendations of the Commission on Postal Reorganization, submitted by such Commission on __, and pertaining to the closure or consolidation of __.", the first blank space being filled in with the appropriate date and the second blank space being filled in with "postal retail facilities", "mail processing facilities", or "area and district offices" (as the case may be);

   Inserted: (3) the title of which is as follows: "Joint resolution disapproving the recommendations of the Commission on Postal Reorganization."; and

   Inserted: (4) which does not have a preamble.

   Inserted: (b) Referral.--A resolution described in subsection (a) that is introduced in the House of Representatives or the Senate shall be referred to the appropriate committees of the House of Representatives or the Senate, respectively.

   Inserted: (c) Discharge.--If the committee to which a resolution described in subsection (a) is referred has not reported such resolution (or an identical resolution) by the end of the 20-day period beginning on the date on which the Commission transmits the report (to which such resolution pertains) to Congress under section 104(d)(3), such committee shall, at the end of such period, be discharged from further consideration of such resolution, and such resolution shall be placed on the appropriate calendar of the House involved.

   Inserted: (d) Consideration.--

   Inserted: (1) In general.--On or after the third day after the date on which the committee to which such a resolution is referred has reported, or has been discharged (under subsection (c)) from further consideration of, such a resolution, it is in order (even though a previous motion to the same effect has been disagreed to) for any Member of the respective House to move to proceed to the consideration of the resolution. A Member may make the motion only on the day after the calendar day on which the Member announces to the House concerned the Member's intention to make the motion, except that, in the case of the House of Representatives, the motion may be made without such prior announcement if the motion is made by direction of the committee to which the resolution was referred. All points of order against the resolution (and against consideration of the resolution) are waived. The motion is highly privileged in the House of Representatives and is privileged in the Senate and is not debatable. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the resolution is agreed to, the respective House shall immediately proceed to consideration of the joint resolution without intervening motion, order, or other business, and the resolution shall remain the unfinished business of the respective House until disposed of.

   Inserted: (2) Debate.--Debate on the resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the resolution. An amendment to the resolution is not in order. A motion further to limit debate is in order and not debatable. A motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the resolution is not in order. A motion to reconsider the vote by which the resolution is agreed to or disagreed to is not in order.

   Inserted: (3) Vote on final passage.--Immediately following the conclusion of the debate on a resolution described in subsection (a) and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the appropriate House, the vote on final passage of the resolution shall occur.

   Inserted: (4) Appeals.--Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution described in subsection (a) shall be decided without debate.

   Inserted: (e) Consideration by Other House.--

   Inserted: (1) In general.--If, before the passage by one House of a resolution of that House described in subsection (a), that House receives from the other House a resolution (described in subsection (a)) relating to the same report, then the following procedures shall apply:

   Inserted: (A) The resolution of the other House shall not be referred to a committee and may not be considered in the House receiving it except in the case of final passage as provided in subparagraph (B)(ii).

   Inserted: (B) With respect to the resolution described in subsection (a) (relating to the report in question) of the House receiving the resolution--

   Inserted: (i) the procedure in that House shall be the same as if no resolution (relating to the same report) had been received from the other House; but

   Inserted: (ii) the vote on final passage shall be on the resolution of the other House.

   Inserted: (2) Disposition of a resolution.--Upon disposition of the resolution received from the other House, it shall no longer be in order to consider the resolution that originated in the receiving House.

   Inserted: (f) Rules of the Senate and House.--This section is enacted by Congress--

   Inserted: (1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a resolution described in subsection (a), and it supersedes other rules only to the extent that it is inconsistent with such rules; and

   Inserted: (2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

   Inserted: SEC. 107. NONAPPEALABILITY OF DECISIONS.

   Inserted: (a) To PRC.--The closing or consolidation of any facility or office under this subtitle may not be appealed to the Postal Regulatory Commission under section 404(d) or any other provision of title 39, United States Code, or be the subject of an advisory opinion issued by the Postal Regulatory Commission under section 3661 of such title.

   Inserted: (b) Judicial Review.--No process, report, recommendation, or other action of the Commission on Postal Reorganization shall be subject to judicial review.

   Inserted: SEC. 108. RULES OF CONSTRUCTION.

   Inserted: (a) Continued Availability of Authority To Close or Consolidate Postal Facilities.--

   Inserted: (1) In general.--Nothing in this subtitle shall be considered to prevent the Postal Service from closing or consolidating any postal facilities, in accordance with otherwise applicable provisions of law, either before or after the implementation of any closures or consolidations under this subtitle.

   Inserted: (2) Coordination rule.--No appeal or determination under section 404(d) of title 39, United States Code, or any other provision of law shall delay, prevent, or otherwise affect any closure or consolidation under this subtitle.

   Inserted: (b) Inapplicability of Certain Provisions.--

   Inserted: (1) In general.--The provisions of law identified in paragraph (2)--

   Inserted: (A) shall not apply to any closure or consolidation carried out under this subtitle; and

   Inserted: (B) shall not be taken into account for purposes of carrying out section 103 or 104.

   Inserted: (2) Provisions identified.--The provisions of law under this paragraph are--

   Inserted: (A) section 101(b) of title 39, United States Code; and

   Inserted: (B) section 404(d) of title 39, United States Code.

   Inserted: SEC. 109. GAO STUDY AND REPORT.

   Inserted: (a) Study.--Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall conduct a study on the effects, with respect to the unemployment rate of minority communities, of the proposed closures and consolidations of postal retail facilities, mail processing facilities, and area or district offices under this subtitle.

   Inserted: (b) Report.--Upon completion of the study required under subsection (a), the Comptroller General of the United States shall submit a report to Congress regarding the findings of such study.

   Inserted: Subtitle B--Other Provisions SEC. 111. FREQUENCY OF MAIL DELIVERY.

   Inserted: Section 101 of title 39, United States Code, is amended by adding at the end the following:

   Inserted: "(h) Nothing in this title or any other provision of law shall be considered to prevent the Postal Service from taking whatever actions may be necessary to provide for 5-day delivery of mail and a commensurate adjustment in rural delivery of mail, subject to the requirements of section 3661.".

   Inserted: SEC. 112. EFFICIENT AND FLEXIBLE UNIVERSAL POSTAL SERVICE.

   Inserted: (a) Postal Policy.--

   Inserted: (1) In general.--Section 101(b) is amended to read as follows:

   Inserted: "(b) The Postal Service shall provide effective and regular postal services to rural areas, communities, and small towns where post offices are not self-sustaining.".

   Inserted: (2) Conforming amendments.--(A) Clause (iii) of section 404(d)(2)(A) is amended to read as follows:

   Inserted: "(iii) whether such closing or consolidation is consistent with the policy of the Government, as stated in section 101(b), that the Postal Service shall provide effective and regular postal services to rural areas, communities, and small towns where post offices are not self-sustaining;".

   Inserted: (B) Section 2401(b)(1) is amended (in the matter before subparagraph (A)) by striking "a maximum degree of".

   Inserted: (b) General Duty.--Paragraph (3) of section 403(b) is amended to read as follows:

   Inserted: "(3) to ensure that postal patrons throughout the Nation will, consistent with reasonable economies of postal operations, have ready access to essential postal services.".

   Inserted: (c) PRC Review of Determinations To Close or Consolidate a Post Office.--

   Inserted: (1) Deadline for review.--Section 404(d)(5) is amended by striking "120 days" and inserting "60 days".

   Inserted: (2) Exclusion from review.--Section 404(d) is amended by adding at the end the following:

   Inserted: "(7)(A) The appeals process set forth in paragraph (5) shall not apply to a determination of the Postal Service to close a post office if there is located, within 2 miles of such post office, a qualified contract postal unit.

   Inserted: "(B) For purposes of this paragraph--

   Inserted: "(i) the term 'contract postal unit' means a store or other place of business which--

   Inserted: "(I) is not owned or operated by the Postal Service; and

   Inserted: "(II) in addition to its usual operations, provides postal services to the general public under contract with the Postal Service; and

   Inserted: "(ii) the term 'qualified contract postal unit', as used in connection with a post office, means a contract postal unit which--

   Inserted: "(I) begins to provide postal services to the general public during the period--

   Inserted: "(aa) beginning 1 year before the date on which the closure or consolidation of such post office is scheduled to take effect; and

   Inserted: "(bb) ending on the 15th day after the date on which the closure or consolidation of such post office is scheduled to take effect; and

   Inserted: "(II) has not, pursuant to subparagraph (A), served as the basis for exempting any other post office from the appeals process set forth in paragraph (5).

   Inserted: "(C)(i) If the contract postal unit (which is providing postal services that had been previously provided by the post office that was closed) does not continue to provide postal services, as required by subparagraph (B)(i)(II), for at least the 2-year period beginning on the date on which such post office was closed, the contract postal unit shall be subject to a closure determination by the Postal Service to decide whether a post office must be reopened within the area (delimited by the 2-mile radius referred to in subparagraph (A)).

   Inserted: "(ii) A decision under clause (i) not to reopen a post office may be appealed to the Postal Regulatory Commission under procedures which the Commission shall by regulation prescribe. Such procedures shall be based on paragraph (5), except that, for purposes of this clause, paragraph (5)(C) shall be applied by substituting 'in violation of section 101(b), leaving postal patrons without effective and regular access to postal services' for 'unsupported by substantial evidence on the record'.".

   Inserted: (3) Applicability.--The amendments made by this subsection shall not apply with respect to any appeal, notice of which is received by the Postal Regulatory Commission before the date of the enactment of this Act (determined applying the rules set forth in section 404(d)(6) of title 39, United States Code).

   Inserted: (d) Expedited Procedures.--

   Inserted: (1) In general.--Section 3661 is amended by adding at the end the following:

   Inserted: "(d)(1) The Commission shall issue its opinion within 90 days after the receipt of any proposal (as referred to in subsection (b)) concerning--

   Inserted: "(A) the closing or consolidation of postal retail facilities (as that term is defined in section 102(2) of the Postal Reform Act of 2012) to a degree that will generally affect service on a nationwide or substantially nationwide basis; or

   Inserted: "(B) an identical or substantially identical proposal on which the Commission issued an opinion within the preceding 5 years.

   Inserted: "(2) If necessary in order to comply with the 90-day requirement under paragraph (1), the Commission may apply expedited procedures which the Commission shall by regulation prescribe.".

   Inserted: (2) Regulations.--The Postal Regulatory Commission shall prescribe any regulations necessary to carry out the amendment made by paragraph (1) within 90 days after the date of the enactment of this Act.

   Inserted: (3) Applicability.--The amendment made by this subsection shall apply with respect to any proposal received by the Postal Regulatory Commission on or after the earlier of--

   Inserted: (A) the 90th day after the date of the enactment of this Act; or

   Inserted: (B) the effective date of the regulations under paragraph (2).

   Inserted: SEC. 113. ENHANCED REPORTING ON POSTAL SERVICE EFFICIENCY.

   Inserted: Section 3652(a) is amended--

   Inserted: (1) in paragraph (1), by striking "and" after the semicolon;

   Inserted: (2) in paragraph (2), by striking the period at the end and inserting "; and"; and

   Inserted: (3) by adding after paragraph (2) the following:

   Inserted: "(3) which shall provide the overall change in Postal Service productivity and the resulting effect of such change on overall Postal Service costs during such year, using such methodologies as the Commission shall by regulation prescribe.".

   Inserted: SEC. 114. APPLICABILITY OF PROCEDURES RELATING TO CLOSURES AND CONSOLIDATIONS.

   Inserted: (a) In General.--Section 404(d) is amended by adding at the end the following:

   Inserted: "(7) For purposes of this subsection, the term 'post office' means a post office and any other facility described in section 102(2) of the Postal Reform Act of 2012.".

   Inserted: (b) Effective Date.--The amendment made by subsection (a) shall be effective with respect to any closure or consolidation, the proposed effective date of which occurs on or after the 60th day following the date of enactment of this Act.

   Inserted: TITLE II--POSTAL SERVICE FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY

   Inserted: Subtitle A--Establishment and Organization SEC. 201. PURPOSES.

   Inserted: (a) Purposes.--The purposes of this title are as follows:

   Inserted: (1) To eliminate budget deficits and cash shortages of the Postal Service through strategic financial planning, sound budgeting, accurate revenue forecasts, and careful spending.

   Inserted: (2) To ensure the universal service mandate detailed in section 101 of title 39, United States Code, is maintained during a period of fiscal emergency.

   Inserted: (3) To conduct necessary investigations and studies to determine the fiscal status and operational efficiency of the Postal Service.

   Inserted: (4) To assist the Postal Service in--

   Inserted: (A) restructuring its organization and workforce to bring expenses in line with diminishing revenue and generate sufficient profits for capital investment and repayment of debt;

   Inserted: (B) meeting all fiscal obligations to the Treasury of the United States; and

   Inserted: (C) ensuring the appropriate and efficient delivery of postal services.

   Inserted: (5) To ensure the long-term financial, fiscal, and economic vitality and operational efficiency of the Postal Service.

   Inserted: (b) Reservation of Powers.--Nothing in this title may be construed--

   Inserted: (1) to relieve any obligations existing as of the date of the enactment of this Act of the Postal Service to the Treasury of the United States; or

   Inserted: (2) to limit the authority of Congress to exercise ultimate legislative authority over the Postal Service.

   Inserted: SEC. 202. ESTABLISHMENT OF THE AUTHORITY.

   Inserted: (a) Establishment.--There shall be established, upon the commencement of any control period, an entity to be known as the "Postal Service Financial Responsibility and Management Assistance Authority" (hereinafter in this title referred to as the "Authority").

   Inserted: (b) Control Period.--

   Inserted: (1) Commencement of a control period.--

   Inserted: (A) In general.--For the purposes of this title, a control period commences whenever the Postal Service has been in default to the Treasury of the United States, with respect to any debts, obligations, loans, bonds, notes, or other form of borrowing, or any scheduled payments to any fund in the Treasury of the United States, for a period of at least 30 days.

   Inserted: (B) Advisory period.--For purposes of the first control period, the Authority shall operate exclusively in an advisory period for two full fiscal years after the commencement of the control period. At the completion of the second full fiscal year or any year thereafter during the length of the control period, if the Postal Service's annual deficit is greater than $2,000,000,000, the Authority shall be fully in force according to the provisions of this title. During an advisory period--

   Inserted: (i) the Authority is not authorized to employ any staff and the Postal Service shall designate a Level-Two Postal Service Executive as a liaison with the members of the Authority; and

   Inserted: (ii) any provision of this title that requires the Authority or the Postal Service to take any action shall be considered only to take effect in the event the Authority comes into full force and that effective date shall be considered to be the date of the commencement of the control period for the purposes any provision not mention in this subparagraph.

   Inserted: (2) Treatment of authorities and responsibilities of the board of governors, etc. during a control period.--During a control period--

   Inserted: (A) all authorities and responsibilities of the Board of Governors, and the individual Governors, of the Postal Service under title 39, United States Code, and any other provision of law shall be assumed by the Authority; and

   Inserted: (B) the Board of Governors, and the individual Governors, may act in an advisory capacity only.

   Inserted: (3) Treatment of certain postal service executives during a control period.--

   Inserted: (A) Definition.--For the purposes of this section, the term "Level-Two Postal Service Executive" includes the Postmaster General, the Deputy Postmaster General, and all other officers or employees of the Postal Service in level two of the Postal Career Executive Service (or the equivalent).

   Inserted: (B) Treatment.--Notwithstanding any other provision of law or employment contract, during a control period--

   Inserted: (i) all Level-Two Postal Service Executives shall serve at the pleasure of the Authority;

   Inserted: (ii) the duties and responsibilities of all Level-Two Postal Service Executives, as well as the terms and conditions of their employment (including their compensation), shall be subject to determination or redetermination by the Authority;

   Inserted: (iii) total compensation of a Level-Two Postal Service Executive may not, for any year in such control period, exceed the annual rate of basic pay payable for level I of the Executive Schedule under section 5312 of title 5, United States Code, for such year; for purposes of this clause, the term "total compensation" means basic pay, bonuses, awards, and all other monetary compensation;

   Inserted: (iv) the percentage by which the rate of basic pay of a Level-Two Postal Service Executive is increased during any year in such control period may not exceed the percentage change in the Consumer Price Index for All Urban Consumers, unadjusted for seasonal variation, for the most recent 12-month period available, except that, in the case of a Level-Two Postal Service Executive who has had a significant change in job responsibilities, a greater change shall be allowable if approved by the Authority;

   Inserted: (v) apart from basic pay, a Level-Two Postal Service Executive may not be afforded any bonus, award, or other monetary compensation for any fiscal year in the control period if expenditures of the Postal Service for such fiscal year exceeded revenues of the Postal Service for such fiscal year (determined in accordance with generally accepted accounting principles); and

   Inserted: (vi) no deferred compensation may be paid, accumulated, or recognized in the case of any Level-Two Postal Service Executive, with respect to any year in a control period, which is not generally paid, accumulated, or recognized in the case of employees of the United States (outside of the Postal Service) in level I of the Executive Schedule under section 5312 of title 5, United States Code, with respect to such year.

   Inserted: (C) Bonus authority.--Section 3686 of title 39, United States Code, shall, during the period beginning on the commencement date of the control period and ending on the termination date of the control period--

   Inserted: (i) be suspended with respect to all Level-Two Postal Service Executives; but

   Inserted: (ii) remain in effect for all other officers and employees of the Postal Service otherwise covered by this section.

   Inserted: (4) Termination of a control period.--Subject to subtitle D, a control period terminates upon certification by the Authority, with the concurrence of the Secretary of the Treasury and the Director of the Office of Personnel Management, that--

   Inserted: (A) for 2 consecutive fiscal years (occurring after the date of the enactment of this Act), expenditures of the Postal Service did not exceed revenues of the Postal Service (as determined in accordance with generally accepted accounting principles);

   Inserted: (B) the Authority has approved a Postal Service financial plan and budget that shows expenditures of the Postal Service not exceeding revenues of the Postal Service (as so determined) for the fiscal year to which such budget pertains and each of the next 3 fiscal years; and

   Inserted: (C) the Postal Service financial plan and budget (as referred to in subparagraph (B)) includes plans to properly fund Postal Service pensions and retiree health benefits in accordance with law.

   Inserted: SEC. 203. MEMBERSHIP AND QUALIFICATION REQUIREMENTS.

   Inserted: (a) Membership.--

   Inserted: (1) In general.--The Authority shall consist of 5 members appointed by the President who meet the qualifications described in subsection (b), except that the Authority may take any action under this title at any time after the President has appointed 4 of its members.

   Inserted: (2) Recommendations.--Of the 5 members so appointed--

   Inserted: (A) 1 shall be appointed from among individuals recommended by the Speaker of the House of Representatives;

   Inserted: (B) 1 shall be appointed from among individuals recommended by the majority leader of the Senate;

   Inserted: (C) 1 shall be appointed from among individuals recommended by the minority leader of the House of Representatives;

   Inserted: (D) 1 shall be appointed from among individuals recommended by the minority leader of the Senate; and

   Inserted: (E) 1 shall be appointed from among individuals recommended by the Comptroller General.

   Inserted: (3) Political affiliation.--No more than 3 members of the Authority may be of the same political party.

   Inserted: (4) Chair.--The President shall designate 1 of the members of the Authority as the Chair of the Authority.

   Inserted: (5) Sense of congress regarding deadline for appointment.--It is the sense of Congress that the President should appoint the members of the Authority as soon as practicable after the date on which a control period commences, but no later than 30 days after such date.

   Inserted: (6) Term of service.--

   Inserted: (A) In general.--Except as provided in subparagraph (B), each member of the Authority shall be appointed for a term of 3 years.

   Inserted: (B) Appointment for term following initial term.--As designated by the President at the time of appointment for the term immediately following the initial term, of the members appointed for the term immediately following the initial term--

   Inserted: (i) 1 member shall be appointed for a term of 1 year;

   Inserted: (ii) 2 members shall be appointed for a term of 2 years; and

   Inserted: (iii) 2 members shall be appointed for a term of 3 years.

   Inserted: (C) Removal.--The President may remove any member of the Authority only for cause.

   Inserted: (D) No compensation for service.--Members of the Authority shall serve without pay, but may receive reimbursement for any reasonable and necessary expenses incurred by reason of service on the Authority.

   Inserted: (b) Qualification Requirements.--

   Inserted: (1) In general.--An individual meets the qualifications for membership on the Authority if the individual--

   Inserted: (A) has significant knowledge and expertise in finance, management, and the organization or operation of businesses having more than 500 employees; and

   Inserted: (B) represents the public interest generally, is not a representative of specific interests using or belonging to the Postal Service, and does not have any business or financial interest in any enterprise in the private sector of the economy engaged in the delivery of mail matter.

   Inserted: (2) Specific conditions.--An individual shall not be considered to satisfy paragraph (1)(B) if, at any time during the 5-year period ending on the date of appointment, such individual--

   Inserted: (A) has been an officer, employee, or private contractor with the Postal Service or the Postal Regulatory Commission; or

   Inserted: (B) has served as an employee or contractor of a labor organization representing employees of the Postal Service or the Postal Regulatory Commission.

   Inserted: SEC. 204. ORGANIZATION.

   Inserted: (a) Adoption of By-Laws for Conducting Business.--As soon as practicable after the appointment of its members, the Authority shall adopt by-laws, rules, and procedures governing its activities under this title, including procedures for hiring experts and consultants. Upon adoption, such by-laws, rules, and procedures shall be submitted by the Authority to the Postmaster General, the President, and Congress.

   Inserted: (b) Certain Activities Requiring Approval of Majority of Members.--Under its by-laws, the Authority may conduct its operations under such procedures as it considers appropriate, except that an affirmative vote of a majority of the members of the Authority shall be required in order for the Authority to--

   Inserted: (1) approve or disapprove a financial plan and budget as described by subtitle C;

   Inserted: (2) implement recommendations on financial stability and management responsibility under section 225;

   Inserted: (3) take any action under authority of section 202(b)(3)(B)(i); or

   Inserted: (4) initiate the establishment of a new workers' compensation system for the Postal Service in accordance with section 311.

   Inserted: SEC. 205. EXECUTIVE DIRECTOR AND STAFF.

   Inserted: (a) Executive Director.--The Authority shall have an Executive Director who shall be appointed by the Chair with the consent of the Authority. The Executive Director shall be paid at a rate determined by the Authority, except that such rate may not exceed the rate of basic pay payable for level IV of the Executive Schedule under section 5315 of title 5, United States Code.

   Inserted: (b) Staff.--With the approval of the Authority, the Executive Director may appoint and fix the pay of such additional personnel as the Executive Director considers appropriate, except that no individual appointed by the Executive Director may be paid at a rate greater than the rate of pay for the Executive Director. Personnel appointed under this subsection shall serve at the pleasure of the Executive Director.

   Inserted: (c) Inapplicability of Certain Civil Service Laws.--The Executive Director and staff of the Authority may be appointed without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and paid without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates.

   Inserted: (d) Staff of Federal Agencies.--Upon request of the Chair, the head of any Federal department or agency may detail, on a reimbursable or nonreimbursable basis, any of the personnel of such department or agency to the Authority to assist it in carrying out its duties under this title.

   Inserted: SEC. 206. FUNDING.

   Inserted: (a) In General.--There are authorized to be appropriated, out of the Postal Service Fund, such sums as may be necessary for the Authority. In requesting an appropriation under this section for a fiscal year, the Authority shall prepare and submit to the Congress under section 2009 of title 39, United States Code, a budget of the Authority's expenses, including expenses for facilities, supplies, compensation, and employee benefits not to exceed $10,000,000. In years in which a control period commences, the Authority shall submit a budget within 30 days of the appointment of the members of the Authority.

   Inserted: (b) Amendment to Section 2009.--Section 2009 is amended in the next to last sentence--

   Inserted: (1) by striking ", and (3)" and inserting ", (3)"; and

   Inserted: (2) by striking the period and inserting ", and (4) the Postal Service Financial Responsibility and Management Assistance Authority requests to be appropriated, out of the Postal Service Fund, under section 206 of the Postal Reform Act of 2012.".

   Inserted: Subtitle B--Powers of the Authority SEC. 211. POWERS.

   Inserted: (a) Powers of Members and Agents.--Any member or agent of the Authority may, if authorized by the Authority, take any action which the Authority is authorized by this section to take.

   Inserted: (b) Obtaining Official Data From the Postal Service.--Notwithstanding any other provision of law, the Authority may secure copies of such records, documents, information, or data from any entity of the Postal Service necessary to enable the Authority to carry out its responsibilities under this title. At the request of the Authority, the Authority shall be granted direct access to such information systems, records, documents, information, or data as will enable the Authority to carry out its responsibilities under this title. The head of the relevant entity of the Postal Service shall provide the Authority with such information and assistance (including granting the Authority direct access to automated or other information systems) as the Authority requires under this subsection.

   Inserted: (c) Gifts, Bequests, and Devises.--The Authority may accept, use, and dispose of gifts, bequests, or devises of services or property, both real and personal, for the purpose of aiding or facilitating the work of the Authority. Gifts, bequests, or devises of money and proceeds from sales of other property received as gifts, bequests, or devises shall be deposited in such account as the Authority may establish and shall be available for disbursement upon order of the Chair.

   Inserted: (d) Administrative Support Services.--Upon the request of the Authority, the Administrator of General Services may provide to the Authority, on a reimbursable basis, the administrative support services necessary for the Authority to carry out its responsibilities under this title.

   Inserted: (e) Authority To Enter Into Contracts.--The Executive Director may enter into such contracts as the Executive Director considers appropriate (subject to the approval of the Chair) to carry out the Authority's responsibilities under this title.

   Inserted: (f) Civil Actions To Enforce Powers.--The Authority may seek judicial enforcement of its authority to carry out its responsibilities under this title.

   Inserted: (g) Penalties.--

   Inserted: (1) Administrative discipline.--Any officer or employee of the Postal Service who, by action or inaction, fails to comply with any directive or other order of the Authority under section 225(c) shall be subject to appropriate administrative discipline, including suspension from duty without pay or removal from office, by order of either the Postmaster General or the Authority.

   Inserted: (2) Reporting requirement.--Whenever an officer or employee of the Postal Service takes or fails to take any action which is noncompliant with any directive or other order of the Authority under section 225(c), the Postmaster General shall immediately report to the Authority all pertinent facts, together with a statement of any actions taken by the Postmaster General or proposed by the Postmaster General to be taken under paragraph (1).

   Inserted: (h) Sense of Congress.--It is the sense of Congress that, in making determinations that affect prior collective bargaining agreements and prior agreements on workforce reduction, any rightsizing effort within the Postal Service that results in a decrease in the number of postal employees should ensure that such employees can receive their full pensions, are fully compensated, and that the collective bargaining agreements and prior agreements on workforce reduction that they entered into with Postal Service management are fully honored.

   Inserted: SEC. 212. EXEMPTION FROM LIABILITY FOR CLAIMS.

   Inserted: The Authority and its members may not be liable for any obligation of or claim against the Postal Service resulting from actions taken to carry out this title.

   Inserted: SEC. 213. TREATMENT OF ACTIONS ARISING UNDER THIS TITLE.

   Inserted: (a) Jurisdiction Established in United States Court of Appeals for the District of Columbia Circuit.--A person (including the Postal Service) adversely affected or aggrieved by an order or decision of the Authority may, within 30 days after such order or decision becomes final, institute proceedings for review thereof by filing a petition in the United States Court of Appeals for the District of Columbia Circuit. The court shall review the order or decision in accordance with section 706 of title 5, United States Code, and chapter 158 and section 2112 of title 28, United States Code. Judicial review shall be limited to the question of whether the Authority acted in excess of its statutory authority, and determinations of the Authority with respect to the scope of its statutory authority shall be upheld if based on a permissible construction of the statutory authority.

   Inserted: (b) Prompt Appeal to the Supreme Court.--Notwithstanding any other provision of law, review by the Supreme Court of the United States of a decision of the Court of Appeals which is issued pursuant to subsection (a) may be had only if the petition for such review is filed within 10 days after the entry of such decision.

   Inserted: (c) Timing of Relief.--No order of any court granting declaratory or injunctive relief against the Authority, including relief permitting or requiring the obligation, borrowing, or expenditure of funds, shall take effect during the pendency of the action before such court, during the time appeal may be taken, or (if appeal is taken) during the period before the court has entered its final order disposing of such action.

   Inserted: (d) Expedited Consideration.--It shall be the duty of the United States Court of Appeals for the District of Columbia and the Supreme Court of the United States to advance on the docket and to expedite to the greatest possible extent the disposition of any matter brought under subsection (a).

   Inserted: SEC. 214. DELIVERY POINT MODERNIZATION.

   Inserted: (a) Definitions.--For purposes of this section--

   Inserted: (1) the term "delivery point" means a mailbox or other receptacle to which mail is delivered;

   Inserted: (2) the term "primary mode of delivery" means the typical method by which the Postal Service delivers letter mail to the delivery point of a postal patron;

   Inserted: (3) the term "door delivery" means a primary mode of mail delivery whereby mail is placed into a slot or receptacle at or near the postal patron's door or is hand delivered to a postal patron, but does not include curbside or centralized delivery;

   Inserted: (4) the term "centralized delivery" means a primary mode of mail delivery whereby mail receptacles are grouped or clustered at a single location; and

   Inserted: (5) the term "curbside delivery" means a primary mode of mail delivery whereby a mail receptacle is situated at the edge of a roadway or curb.

   Inserted: (b) Reduction in Total Number of Delivery Points.--The Authority shall, during the first control period commencing under this title, take such measures as may be necessary and appropriate so that--

   Inserted: (1) in each fiscal year beginning at least 2 years after the commencement date of such first control period--

   Inserted: (A) the total number of delivery points for which door delivery is the primary mode of mail delivery does not exceed 25 percent of the corresponding number for the fiscal year last ending before such commencement date; and

   Inserted: (B) the total annual costs attributable to door delivery, centralized delivery, and curbside delivery combined will be at least $3,500,000,000 less than the corresponding total annual costs for the fiscal year last ending before such commencement date; and

   Inserted: (2) in each fiscal year beginning at least 4 years after the commencement date of such first control period, the total number of delivery points for which door delivery is the primary mode of mail delivery does not exceed 10 percent of the corresponding number for the fiscal year last ending before such commencement date.

   Inserted: In making any decision under this subsection involving the continuation or termination of door delivery with respect to any locality or addresses within a locality, the Authority shall consider rates of poverty, population density, historical value, whether such locality is in a registered historic district (as that term is defined in section 47(c)(3)(B) of the Internal Revenue Code of 1986), whether such address is another place on the National Register of Historic Places, and other appropriate factors.

   Inserted: (c) Order of Precedence.--In order to carry out subsection (b)--

   Inserted: (1) in making conversions from door delivery to other primary modes of delivery--

   Inserted: (A) conversion shall be to centralized delivery; except

   Inserted: (B) if subparagraph (A) is impractical, conversion shall be to curbside delivery; and

   Inserted: (2) in the case of delivery points established after the commencement date of the first control period under this title--

   Inserted: (A) centralized delivery shall be the primary mode of delivery; except

   Inserted: (B) if subparagraph (A) is impractical, curbside delivery shall be the primary mode of delivery.

   Inserted: (d) Waiver for Physical Hardship.--The Postal Service shall establish and maintain a waiver program under which, upon application, door delivery may be continued or provided in any case in which--

   Inserted: (1) centralized or curbside delivery would, but for this subsection, otherwise be the primary mode of delivery; and

   Inserted: (2) door delivery is necessary in order to avoid causing significant physical hardship to a postal patron.

   Inserted: (e) Centralized Delivery Placement.--It is the sense of the Congress that the Postal Service should negotiate with State and local governments, businesses, local associations, and property owners to place centralized delivery units in locations that maximize delivery efficiency, ease of use for postal patrons, and respect for private property rights.

   Inserted: (f) Voucher Program.--

   Inserted: (1) In general.--The Postal Service may, in accordance with such standards and procedures as the Postal Service shall by regulation prescribe, provide for a voucher program under which--

   Inserted: (A) upon application, the Postal Service may defray all or any portion of the costs associated with conversion from door delivery under this section which would otherwise be borne by postal patrons; and

   Inserted: (B) the Postal Service Competitive Products Fund is made available for that purpose.

   Inserted: (2) Conforming amendment.--Section 2011(a)(2) is amended--

   Inserted: (A) in subparagraph (A), by striking "and" after the semicolon;

   Inserted: (B) in subparagraph (B), by striking the period and inserting "; and"; and

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

   Inserted: "(C) vouchers under the program described in section 214(f)(1) of the Postal Reform Act of 2012.".

   Inserted: (g) Audits.--

   Inserted: (1) In general.--The Inspector General of the United States Postal Service--

   Inserted: (A) shall conduct an annual audit to determine whether the Postal Service is in compliance with the requirements of subsection (b); and

   Inserted: (B) shall make such recommendations as the Inspector General considers appropriate to improve the administration of such subsection.

   Inserted: (2) Submission.--The audit and recommendations under paragraph (1) shall be submitted by the Inspector General to--

   Inserted: (A) the Committee on Oversight and Government Reform of the House of Representatives; and

   Inserted: (B) the Committee on Homeland Security and Governmental Affairs of the Senate.

   Inserted: (3) Information.--Upon request, the Postal Service shall furnish such information as the Inspector General may require in order to carry out this subsection.

   Inserted: (h) Savings Report.--

   Inserted: (1) In general.--In the event that a reduction in door delivery points is required under this section, the Authority shall submit a report to Congress, not later than 1 year after the date on which such reductions commence, describing the cost savings realized to the date of such submission and the estimated additional cost savings anticipated as a result of such reductions occurring after such submission. The report shall include--

   Inserted: (A) the measures taken to achieve the realized savings and the assumptions and methodologies used to compute the estimated cost savings; and

   Inserted: (B) information with respect to what additional measures might be necessary to achieve the cost savings required under this section.

   Inserted: (2) Reduction limitation.--Notwithstanding any other provision of this Act, if the Authority determines that the measures described pursuant to subparagraphs (A) and (B) of paragraph (1) are not feasible, not cost effective, or otherwise detrimental to the mail delivery policy of the Postal Service, the Authority shall submit a report to Congress stating any legislative changes recommended for door delivery modernization procedures under this section, including increasing flexibility of this section's requirements or the postponement of further conversion.

   Inserted: Subtitle C--Establishment and Enforcement of Financial Plan and Budget for the Postal Service SEC. 221. DEVELOPMENT OF FINANCIAL PLAN AND BUDGET FOR THE POSTAL SERVICE.

   Inserted: (a) Development of Financial Plan and Budget.--For each fiscal year for which the Postal Service is in a control period, the Postmaster General shall develop and submit to the Authority a financial plan and budget for the Postal Service in accordance with this section.

   Inserted: (b) Contents of Financial Plan and Budget.--A financial plan and budget for the Postal Service for a fiscal year shall specify the budget for the Postal Service as required by section 2009 of title 39, United States Code, for the applicable fiscal year and the next 3 fiscal years, in accordance with the following requirements:

   Inserted: (1) The financial plan and budget shall meet the requirements described in subsection (c) to promote the financial stability of the Postal Service.

   Inserted: (2) The financial plan and budget shall--

   Inserted: (A) include the Postal Service's annual budget program (under section 2009 of title 39, United States Code) and the Postal Service's plan commonly referred to as its "Integrated Financial Plan";

   Inserted: (B) describe lump-sum expenditures by all categories traditionally used by the Postal Service;

   Inserted: (C) describe capital expenditures (together with a schedule of projected capital commitments and cash outlays of the Postal Service and proposed sources of funding);

   Inserted: (D) contain estimates of overall debt (both outstanding and anticipated to be issued); and

   Inserted: (E) contain cash flow and liquidity forecasts for the Postal Service at such intervals as the Authority may require.

   Inserted: (3) The financial plan and budget shall include a statement describing methods of estimations and significant assumptions.

   Inserted: (4) The financial plan and budget shall include any other provisions and shall meet such other criteria as the Authority considers appropriate to meet the purposes of this title, including provisions for--

   Inserted: (A) changes in personnel policies and levels for each component of the Postal Service; and

   Inserted: (B) management initiatives to promote productivity, improvement in the delivery of services, or cost savings.

   Inserted: (c) Requirements To Promote Financial Stability.--

   Inserted: (1) In general.--The requirements to promote the financial stability of the Postal Service applicable to the financial plan and budget for a fiscal year are as follows:

   Inserted: (A) In each fiscal year (following the first full fiscal year) in a control period, budgeted expenditures of the Postal Service for the fiscal year involved may not exceed budgeted revenues of the Postal Service for the fiscal year involved.

   Inserted: (B) In each fiscal year in a control period, the Postal Service shall make continuous, substantial progress towards long-term fiscal solvency and shall have substantially greater net income than in the previous fiscal year.

   Inserted: (C) The financial plan and budget shall assure the continuing long-term financial stability of the Postal Service, as indicated by factors such as the efficient management of the Postal Service's workforce and the effective provision of services by the Postal Service.

   Inserted: (2) Application of sound budgetary practices.--In meeting the requirement described in paragraph (1) with respect to a financial plan and budget for a fiscal year, the Postal Service shall apply sound budgetary practices, including reducing costs and other expenditures, improving productivity, increasing revenues, or a combination of such practices.

   Inserted: (3) Assumptions based on current law.--In meeting the requirements described in paragraph (1) with respect to a financial plan and budget for a fiscal year, the Postal Service shall base estimates of revenues and expenditures on Federal law as in effect at the time of the preparation of such financial plan and budget.

   Inserted: SEC. 222. PROCESS FOR SUBMISSION AND APPROVAL OF FINANCIAL PLAN AND BUDGET.

   Inserted: (a) In General.--For each fiscal year for which the Postal Service is in a control period, the Postmaster General shall submit to the Authority--

   Inserted: (1) by February 1 before the start of such fiscal year, a preliminary financial plan and budget under section 221 for such fiscal year; and

   Inserted: (2) by August 1 before the start of such fiscal year, a final financial plan and budget under section 221 for such fiscal year.

   Inserted: (b) Review by Authority.--Upon receipt of a financial plan and budget under subsection (a) (whether preliminary or final), the Authority shall promptly review such financial plan and budget. In conducting the review, the Authority may request any additional information it considers necessary and appropriate to carry out its duties under this subtitle.

   Inserted: (c) Approval of Postmaster General's Financial Plan and Budget.--

   Inserted: (1) Certification to postmaster general.--

   Inserted: (A) In general.--If the Authority determines that the final financial plan and budget for the fiscal year submitted by the Postmaster General under subsection (a) meets the requirements of section 221--

   Inserted: (i) the Authority shall approve the financial plan and budget and shall provide the Postmaster General, the President, and Congress with a notice certifying its approval; and

   Inserted: (ii) the Postmaster General shall promptly submit the annual budget program to the Office of Management and Budget pursuant to section 2009 of title 39, United States Code.

   Inserted: (B) Deemed approval after 30 days.--

   Inserted: (i) In general.--If the Authority has not provided the Postmaster General, the President, and Congress with a notice certifying approval under subparagraph (A)(i) or a statement of disapproval under subsection (d) before the expiration of the 30-day period which begins on the date the Authority receives the financial plan and budget from the Postmaster General under subsection (a), the Authority shall be deemed to have approved the financial plan and budget and to have provided the Postmaster General, the President, and Congress with the notice certifying approval under subparagraph (A)(i).

   Inserted: (ii) Explanation of failure to respond.--If clause (i) applies with respect to a financial plan and budget, the Authority shall provide the Postmaster General, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 30-day period described in such clause.

   Inserted: (d) Disapproval of Postmaster General's Budget.--If the Authority determines that the final financial plan and budget for the fiscal year submitted by the Postmaster General under subsection (a) does not meet the requirements applicable under section 221, the Authority shall disapprove the financial plan and budget, and shall provide the Postmaster General, the President, and Congress with a statement containing--

   Inserted: (1) the reasons for such disapproval;

   Inserted: (2) the amount of any shortfall in the budget or financial plan; and

   Inserted: (3) any recommendations for revisions to the budget the Authority considers appropriate to ensure that the budget is consistent with the financial plan and budget.

   Inserted: (e) Authority Review of Postmaster General's Revised Final Financial Plan and Budget.--

   Inserted: (1) Submission of postmaster general's revised final financial plan and budget.--Not later than 15 days after receiving the statement from the Authority under subsection (d), the Postmaster General shall promptly adopt a revised final financial plan and budget for the fiscal year which addresses the reasons for the Authority's disapproval cited in the statement, and shall submit such financial plan and budget to the Authority.

   Inserted: (2) Approval of postmaster general's revised final financial plan and budget.--If, after reviewing the revised final financial plan and budget for a fiscal year submitted by the Postmaster General under paragraph (1) in accordance with the procedures described in this section, the Authority determines that the revised final financial plan and budget meets the requirements applicable under section 221--

   Inserted: (A) the Authority shall approve the financial plan and budget and shall provide the Postmaster General, the President, and Congress with a notice certifying its approval; and

   Inserted: (B) the Postmaster General shall promptly submit the annual budget program to the Office of Management and Budget pursuant to section 2009 of title 39, United States Code.

   Inserted: (3) Disapproval of postmaster general's revised final financial plan and budget.--

   Inserted: (A) In general.--If, after reviewing the revised final financial plan and budget for a fiscal year submitted by the Postmaster General under paragraph (1) in accordance with the procedures described in this subsection, the Authority determines that the revised final financial plan and budget does not meet the applicable requirements under section 221, the Authority shall--

   Inserted: (i) disapprove the financial plan and budget;

   Inserted: (ii) provide the Postmaster General, the President, and Congress with a statement containing the reasons for such disapproval and describing the amount of any shortfall in the financial plan and budget; and

   Inserted: (iii) approve and recommend a financial plan and budget for the Postal Service which meets the applicable requirements under section 221, and submit such financial plan and budget to the Postmaster General, the President, and Congress.

   Inserted: (B) Submission to omb.--Upon receipt of the recommended financial plan and budget under subparagraph (A)(iii), the Postmaster General shall promptly submit the recommended annual budget program to the Office of Management and Budget pursuant to section 2009 of title 39, United States Code.

   Inserted: (4) Deemed approval after 15 days.--

   Inserted: (A) In general.--If the Authority has not provided the Postmaster General, the President, and Congress with a notice certifying approval under paragraph (2)(A) or a statement of disapproval under paragraph (3) before the expiration of the 15-day period which begins on the date the Authority receives the revised final financial plan and budget submitted by the Postmaster General under paragraph (1), the Authority shall be deemed to have approved the revised final financial plan and budget and to have provided the Postmaster General, the President, and Congress with the notice certifying approval described in paragraph (2)(A).

   Inserted: (B) Explanation of failure to respond.--If subparagraph (A) applies with respect to a financial plan and budget, the Authority shall provide the Postmaster General, the President and Congress with an explanation for its failure to provide the notice certifying approval or the statement of disapproval during the 15-day period described in such subparagraph.

   Inserted: (f) Deadline for Transmission of Financial Plan and Budget by Authority.--Notwithstanding any other provision of this section, not later than September 30th before each fiscal year which is in a control period, the Authority shall--

   Inserted: (1) provide Congress with a notice certifying its approval of the Postmaster General's initial financial plan and budget for the fiscal year under subsection (c)(1);

   Inserted: (2) provide Congress with a notice certifying its approval of the Postmaster General's revised final financial plan and budget for the fiscal year under subsection (e)(2); or

   Inserted: (3) submit to Congress an approved and recommended financial plan and budget of the Authority for the Postal Service for the fiscal year under subsection (e)(3)(A)(iii).

   Inserted: (g) Revisions to Financial Plan and Budget.--

   Inserted: (1) Permitting postmaster general to submit revisions.--The Postmaster General may submit proposed revisions to the financial plan and budget for a control period to the Authority at any time during the year.

   Inserted: (2) Process for review, approval, disapproval, and postmaster general action.--Except as provided in paragraph (3), the procedures described in subsections (b), (c), (d), and (e) shall apply with respect to a proposed revision to a financial plan and budget in the same manner as such procedures apply with respect to the original financial plan and budget.

   Inserted: (3) Exception for revisions not affecting spending.--To the extent that a proposed revision to a financial plan and budget adopted by the Postmaster General pursuant to this subsection does not increase the amount of spending with respect to any account of the Postal Service, the revision shall become effective upon the Authority's approval of such revision.

   Inserted: SEC. 223. RESPONSIBILITIES OF THE AUTHORITY.

   Inserted: (a) In General.--The Authority shall direct the exercise of the powers of the Postal Service, including--

   Inserted: (1) determining its overall strategies (both long-term and short-term);

   Inserted: (2) determining its organizational structure, particularly for senior management at the level of vice president and higher;

   Inserted: (3) hiring, monitoring, compensating, and, when necessary, replacing senior management at the level of vice president and higher, as well as ensuring adequate succession planning for these positions;

   Inserted: (4) approving major policies, particularly those that have an important effect on the Postal Service's financial position and the provision of universal postal service;

   Inserted: (5) approving corporate budgets, financial and capital plans, operational and service performance standards and targets, human resources strategies, collective bargaining strategies, negotiation parameters, and collective bargaining agreements, and the compensation structure for nonbargaining employees;

   Inserted: (6) approving substantial capital projects and any substantial disposition of capital assets, such as surplus property;

   Inserted: (7) approving changes in rates and classifications, new products and services, policy regarding other substantial matters before the Postal Regulatory Commission, and any appeals of its decisions or orders to the Federal courts;

   Inserted: (8) approving the Postal Service Annual Report, Annual Comprehensive Statement, and strategic plans, performance plans, and performance program reports under chapter 28 of title 39, United States Code;

   Inserted: (9) formulating and communicating organizational policy and positions on legislative and other public policy matters to Congress and the public;

   Inserted: (10) ensuring organizational responsiveness to oversight by Congress, the Postal Regulatory Commission, the Treasury of the United States, and other audit entities;

   Inserted: (11) ensuring adequate internal controls and selecting, monitoring, and compensating an independent public accounting firm to conduct an annual audit of the Postal Service; and

   Inserted: (12) carrying out any responsibility, not otherwise listed in this subsection, that was the responsibility of the Board of Governors at any time during the 5-year period ending on the date of the enactment of this Act.

   Inserted: (b) Review of Postal Service Proposals.--

   Inserted: (1) Submission of postal service proposals to the authority.--During a control period, the Postmaster General shall submit to the Authority any proposal that has a substantial effect on any item listed in subsection (a).

   Inserted: (2) Prompt review by authority.--Upon receipt of a proposal from the Postmaster General under paragraph (1), the Authority shall promptly review the proposal to determine whether it is consistent with the applicable financial plan and budget approved under this title.

   Inserted: (3) Actions by authority.--

   Inserted: (A) Approval.--If the Authority determines that a proposal is consistent with the applicable financial plan and budget, the Authority shall notify the Postmaster General that it approves the proposal.

   Inserted: (B) Finding of inconsistency.--If the Authority determines that a proposal is significantly inconsistent with the applicable financial plan and budget, the Authority shall--

   Inserted: (i) notify the Postmaster General of its finding;

   Inserted: (ii) provide the Postmaster General with an explanation of the reasons for its finding; and

   Inserted: (iii) to the extent the Authority considers appropriate, provide the Postmaster General with recommendations for modifications to the proposal.

   Inserted: (4) Deemed approval.--If the Authority does not notify the Postmaster General that it approves or disapproves a proposal submitted under this subsection during the 7-day period which begins on the date the Postmaster General submits the proposal to the Authority, the Authority shall be deemed to have approved the proposal in accordance with paragraph (3)(A). At the option of the Authority, the previous sentence shall be applied as if the reference in such sentence to "7-day period" were a reference to "14-day period" if, during the 7-day period referred to in the preceding sentence, the Authority so notifies the Postmaster General.

   Inserted: (c) Effect of Approved Financial Plan and Budget on Contracts and Leases.--

   Inserted: (1) Mandatory prior approval for certain contracts and leases.--

   Inserted: (A) In general.--In the case of a contract or lease described in subparagraph (B) which is proposed to be entered into, renewed, modified, or extended by the Postal Service during a control period, the Postmaster General (or the appropriate officer or agent of the Postal Service) shall submit the proposed contract or lease to the Authority. The Authority shall review each contract or lease submitted under this subparagraph, and the Postmaster General (or the appropriate officer or agent of the Postal Service) may not enter into the contract or lease unless the Authority determines that the proposed contract or lease is consistent with the financial plan and budget for the fiscal year.

   Inserted: (B) Contracts and leases described.--A contract or lease described in this subparagraph is--

   Inserted: (i) a labor contract entered into through collective bargaining; or

   Inserted: (ii) such other type of contract or lease as the Authority may specify for purposes of this subparagraph.

   Inserted: (2) Authority to review other contracts after execution.--

   Inserted: (A) In general.--In addition to the prior approval of certain contracts and leases, the Postal Service shall submit to the Authority--

   Inserted: (i) any Level-Two Post Career Executive Service employee contract that is in effect during a control period; and

   Inserted: (ii) any collective bargaining agreement entered into by the Postal Service that is in effect during a control period.

   Inserted: Any such contract or agreement shall be submitted to the Authority upon the commencement of a control period and at such other times as the Authority may require.

   Inserted: (B) Review by authority.--The Authority shall review each contract submitted under subparagraph (A) to determine if the contract is consistent with the financial plan and budget for the fiscal year. If the Authority determines that the contract is not consistent with the financial plan and budget, the Authority shall take such actions as are within the Authority's powers to revise the contract.

   Inserted: SEC. 224. EFFECT OF FINDING NONCOMPLIANCE WITH FINANCIAL PLAN AND BUDGET.

   Inserted: (a) Submission of Reports.--Not later than 30 days after the expiration of each quarter of each fiscal year beginning in a control period, the Postmaster General shall submit reports to the Authority describing the actual revenues obtained and expenditures made by the Postal Service during the quarter with its cash flows during the quarter, and comparing such actual revenues, expenditures, and cash flows with the most recent projections for these items.

   Inserted: (b) Additional Information.--If the Authority determines, based on reports submitted by the Postmaster General under subsection (a), independent audits, or such other information as the Authority may obtain, that the revenues or expenditures of the Postal Service during a control period are not consistent with the financial plan and budget for the year, the Authority shall require the Postmaster General to provide such additional information as the Authority determines to be necessary to explain the inconsistency.

   Inserted: (c) Certification of Variance.--

   Inserted: (1) In general.--After requiring the Postmaster General to provide additional information under subsection (b), the Authority shall certify to the Postmaster General, the President, the Secretary of the Treasury, and Congress that the Postal Service is at variance with the financial plan and budget unless--

   Inserted: (A) the additional information provides an explanation for the inconsistency which the Authority finds reasonable and appropriate; or

   Inserted: (B)(i) the Postal Service adopts or implements remedial action (including revising the financial plan and budget pursuant to section 222(g)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan and budget; and

   Inserted: (ii) the Postmaster General agrees to submit the reports described in subsection (a) on a monthly basis for such period as the Authority may require.

   Inserted: (2) Special rule for inconsistencies attributable to acts of congress.--

   Inserted: (A) Determination by authority.--If the Authority determines that the revenues or expenditures of the Postal Service during a control period are not consistent with the financial plan and budget for the year as approved by the Authority under section 222 as a result of the terms and conditions of any law enacted by Congress which affects the Postal Service, the Authority shall so notify the Postmaster General.

   Inserted: (B) Certification.--In the case of an inconsistency described in subparagraph (A), the Authority shall certify to the Postmaster General, the President, the Secretary of the Treasury, and Congress that the Postal Service is at variance with the financial plan and budget unless the Postal Service adopts or implements remedial action (including revising the financial plan and budget pursuant to section 202(e)) to correct the inconsistency which the Authority finds reasonable and appropriate, taking into account the terms of the financial plan and budget.

   Inserted: (d) Effect of Certification.--If the Authority certifies to the Secretary of the Treasury that a variance exists, the Authority or the Secretary may withhold access by the Postal Service to additional supplementary debt authorized by this title.

   Inserted: SEC. 225. RECOMMENDATIONS REGARDING FINANCIAL STABILITY, ETC.

   Inserted: (a) In General.--The Authority may at any time submit recommendations to the Postmaster General, the President, and Congress on actions the Postal Service or any other entity of the Federal Government should take to ensure compliance by the Postal Service with a financial plan and budget or to otherwise promote the financial stability, management responsibility, and service delivery efficiency of the Postal Service, including recommendations relating to--

   Inserted: (1) the management of the Postal Service's financial affairs, including cash forecasting, information technology, placing controls on expenditures for personnel, reducing benefit costs, reforming procurement practices, and placing other controls on expenditures;

   Inserted: (2) the relationship between the Postal Service and other entities of the Federal Government;

   Inserted: (3) the structural relationship of subdivisions within the Postal Service;

   Inserted: (4) the modification of existing revenue structures, or the establishment of additional revenue structures;

   Inserted: (5) the establishment of alternatives for meeting obligations to pay for the pensions and retirement benefits of current and future Postal Service retirees;

   Inserted: (6) modifications of services which are the responsibility of and are delivered by the Postal Service;

   Inserted: (7) modifications of the types of services which are delivered by entities other than the Postal Service under alternative service delivery mechanisms;

   Inserted: (8) the effects of Federal Government laws and court orders on the operations of the Postal Service;

   Inserted: (9) the increased use of a personnel system for employees of the Postal Service which is based upon employee performance standards; and

   Inserted: (10) the improvement of personnel training and proficiency, the adjustment of staffing levels, and the improvement of training and performance of management and supervisory personnel.

   Inserted: (b) Response to Recommendations for Actions Within Authority of Postal Service.--

   Inserted: (1) In general.--In the case of any recommendations submitted under subsection (a) during a control period which are within the authority of the Postal Service to adopt, not later than 90 days after receiving the recommendations, the Postmaster General shall submit a statement to the Authority, the President, and Congress which provides notice as to whether the Postal Service will adopt the recommendations.

   Inserted: (2) Implementation plan required for adopted recommendations.--If the Postmaster General notifies the Authority and Congress under paragraph (1) that the Postal Service will adopt any of the recommendations submitted under subsection (a), the Postmaster General shall include in the statement a written plan to implement the recommendation which includes--

   Inserted: (A) specific performance measures to determine the extent to which the Postal Service has adopted the recommendation; and

   Inserted: (B) a schedule for auditing the Postal Service's compliance with the plan.

   Inserted: (3) Explanations required for recommendations not adopted.--If the Postmaster General notifies the Authority, the President, and Congress under paragraph (1) that the Postal Service will not adopt any recommendation submitted under subsection (a) which the Postal Service has authority to adopt, the Postmaster General shall include in the statement explanations for the rejection of the recommendations.

   Inserted: (c) Implementation of Rejected Recommendations by Authority.--

   Inserted: (1) In general.--If the Postmaster General notifies the Authority, the President, and Congress under subsection (b)(1) that the Postal Service will not adopt any recommendation submitted under subsection (a) which the Postal Service has authority to adopt, the Authority may by a majority vote of its members take such action concerning the recommendation as it deems appropriate, after consulting with the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate.

   Inserted: (2) Effective date.--This subsection shall apply with respect to recommendations of the Authority made after the expiration of the 6-month period which begins on the date of the commencement of a control period.

   Inserted: SEC. 226. SPECIAL RULES FOR FISCAL YEAR IN WHICH CONTROL PERIOD COMMENCES.

   Inserted: (a) Adoption of Transition Budget.--Notwithstanding any provision of section 222 to the contrary, in the case of a fiscal year in which a control period commences, the following rules shall apply:

   Inserted: (1) Not later than 45 days after the appointment of its members, the Authority shall review the proposed Integrated Financial Plan for the Postal Service for such fiscal year and shall submit any recommendations for modifications to such plan to promote the financial stability of the Postal Service to the Postmaster General, the President, and Congress.

   Inserted: (2) Not later than 15 days after receiving the recommendations of the Authority submitted under paragraph (1), the Postmaster General shall promptly adopt a revised budget for the fiscal year (in this section referred to as the "transition budget"), and shall submit the transition budget to the Authority, the President, and Congress.

   Inserted: (3) Not later than 15 days after receiving the transition budget from the Postmaster General under paragraph (2), the Authority shall submit a report to the Postmaster General, the President, and Congress analyzing the budget (taking into account any items or provisions disapproved by the Postmaster General) and shall include in the report such recommendations for revisions to the transition budget as the Authority considers appropriate to promote the financial stability of the Postal Service during the fiscal year.

   Inserted: (b) Financial Plan and Budget.--

   Inserted: (1) Deadline for submission.--For purposes of section 222, the Postmaster General shall submit the financial plan and budget for the applicable fiscal year as soon as practicable after the commencement of a control period (in accordance with guidelines established by the Authority).

   Inserted: (2) Adoption by postmaster general.--In accordance with the procedures applicable under section 222 (including procedures providing for review by the Authority) the Postmaster General shall adopt the financial plan and budget for the applicable fiscal year (including the transition budget incorporated in the financial plan and budget).

   Inserted: (3) Transition budget as temporary financial plan and budget.--Until the approval of the financial plan and budget for the applicable fiscal year by the Authority under this subsection, the transition budget established under subsection (a) shall serve as the financial plan and budget adopted under this subtitle for purposes of this Act (and any provision of law amended by this Act) for the applicable fiscal year.

   Inserted: SEC. 227. ASSISTANCE IN ACHIEVING FINANCIAL STABILITY, ETC.

   Inserted: In addition to any other actions described in this title, the Authority may undertake cooperative efforts to assist the Postal Service in achieving financial stability and management efficiency, including--

   Inserted: (1) assisting the Postal Service in avoiding defaults, eliminating and liquidating deficits, maintaining sound budgetary practices, and avoiding interruptions in the delivery of services;

   Inserted: (2) assisting the Postal Service in improving the delivery of services, the training and

   Inserted: effectiveness of personnel of the Postal Service, and the efficiency of management and supervision; and

   Inserted: (3) making recommendations to the President for transmission to Congress on changes to this Act or other Federal laws, or other actions of the Federal Government, which would assist the Postal Service in complying with an approved financial plan and budget under subtitle B.

   Inserted: SEC. 228. OBTAINING REPORTS.

   Inserted: The Authority may require the Postmaster General, the Chief Financial Officer of the Postal Service, and the Inspector General of the Postal Service, to prepare and submit such reports as the Authority considers appropriate to assist it in carrying out its responsibilities under this title, including submitting copies of any reports regarding revenues, expenditures, budgets, costs, plans, operations, estimates, and other financial or budgetary matters of the Postal Service.

   Inserted: SEC. 229. REPORTS AND COMMENTS.

   Inserted: (a) Annual Reports to Congress.--Not later than 30 days after the last day of each fiscal year which is a control year, the Authority shall submit a report to Congress describing--

   Inserted: (1) the progress made by the Postal Service in meeting the objectives of this title during the fiscal year;

   Inserted: (2) the assistance provided by the Authority to the Postal Service in meeting the purposes of this title for the fiscal year; and

   Inserted: (3) any other activities of the Authority during the fiscal year.

   Inserted: (b) Review and Analysis of Performance and Financial Accountability Reports.--The Authority shall review each yearly report prepared and submitted by the Postmaster General to the Postal Regulatory Commission and Congress and shall submit a report to Congress analyzing the completeness and accuracy of such reports.

   Inserted: (c) Comments Regarding Activities of Postal Service.--At any time during a control period, the Authority may submit a report to Congress describing any action taken by the Postal Service (or any failure to act by the Postal Service) which the Authority determines will adversely affect the Postal Service's ability to comply with an approved financial plan and budget under subtitle B or will otherwise have a significant adverse impact on the best interests of the Postal Service.

   Inserted: (d) Reports on Effect of Federal Laws on the Postal Service.--At any time during any year, the Authority may submit a report to the Postmaster General, the President, and Congress on the effect of laws enacted by Congress on the financial plan and budget for the year and on the financial stability and management efficiency of the Postal Service in general.

   Inserted: (e) Making Reports Publicly Available.--The Authority shall make any report submitted under this section available to the public, except to the extent that the Authority determines that the report contains confidential material.

   Inserted: Subtitle D--Termination of a Control Period SEC. 231. TERMINATION OF CONTROL PERIOD, ETC.

   Inserted: (a) In General.--After the completion of the requirements for the termination of a control period described in section 202(b)(4), the Authority shall submit a recommendation to Congress requesting the termination of such control period, the dissolution of the Authority, and the reinstatement to the Board of Governors (and the individual Governors) of the Postal Service of the authorities and responsibilities referred to in section 202(b)(2)(A).

   Inserted: (b) Congressional Approval.--

   Inserted: (1) In general.--A control period shall not be terminated unless a joint resolution approving of the recommendation in subsection (a) is enacted, in accordance with section 232, before the earlier of--

   Inserted: (A) the end of the 30-day period beginning on the date on which the Authority transmits the recommendation to Congress under subsection (a); or

   Inserted: (B) the adjournment of the Congress sine die for the session during which such recommendation is transmitted.

   Inserted: (2) Days of session.--For purposes of paragraph (1) and subsections (a) and (c) of section 232, the days on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain shall be excluded in the computation of a period.

   Inserted: SEC. 232. CONGRESSIONAL CONSIDERATION OF RECOMMENDATION.

   Inserted: (a) Terms of the Resolution.--For purposes of this subtitle, the term "joint resolution" means only a joint resolution which is introduced within the 10-day period beginning on the date on which the recommendation referred to in section 231(a) is received by Congress--

   Inserted: (1) the matter after the resolving clause of which is as follows: "That Congress approves the recommendation of the Postal Service Financial Responsibility and Management Assistance Authority, submitted by such Authority on __.", the blank space being filled in with the appropriate date;

   Inserted: (2) the title of which is as follows: "Joint resolution approving the recommendation of Postal Service Financial Responsibility and Management Assistance Authority."; and

   Inserted: (3) which does not have a preamble.

   Inserted: (b) Referral.--A resolution described in subsection (a) that is introduced in the House of Representatives or the Senate shall be referred to the appropriate committees of the House of Representatives or the Senate, respectively.

   Inserted: (c) Discharge.--If the committee to which a resolution described in subsection (a) is referred has not reported such resolution (or an identical resolution) by the end of the 20-day period beginning on the date on which the Authority transmits its recommendation to Congress under section 231(a) such committee shall, at the end of such period, be discharged from further consideration of such resolution, and such resolution shall be placed on the appropriate calendar of the House involved.

   Inserted: (d) Consideration.--

   Inserted: (1) In general.--On or after the third day after the date on which the committee to which such a resolution is referred has reported, or has been discharged (under subsection (c)) from further consideration of, such a resolution, it is in order (even though a previous motion to the same effect has been disagreed to) for any Member of the respective House to move to proceed to the consideration of the resolution. A Member may make the motion only on the day after the calendar day on which the Member announces to the House concerned the Member's intention to make the motion, except that, in the case of the House of Representatives, the motion may be made without such prior announcement if the motion is made by direction of the committee to which the resolution was referred. All points of order against the resolution (and against consideration of the resolution) are waived. The motion is highly privileged in the House of Representatives and is privileged in the Senate and is not debatable. The motion is not subject to amendment, or to a motion to postpone, or to a motion to proceed to the consideration of other business. A motion to reconsider the vote by which the motion is agreed to or disagreed to shall not be in order. If a motion to proceed to the consideration of the resolution is agreed to, the respective House shall immediately proceed to consideration of the joint resolution without intervening motion, order, or other business, and the resolution shall remain the unfinished business of the respective House until disposed of.

   Inserted: (2) Debate.--Debate on the resolution, and on all debatable motions and appeals in connection therewith, shall be limited to not more than 2 hours, which shall be divided equally between those favoring and those opposing the resolution. An amendment to the resolution is not in order. A motion further to limit debate is in order and not debatable. A motion to postpone, or a motion to proceed to the consideration of other business, or a motion to recommit the resolution is not in order. A motion to reconsider the vote by which the resolution is agreed to or disagreed to is not in order.

   Inserted: (3) Vote on final passage.--Immediately following the conclusion of the debate on a resolution described in subsection (a) and a single quorum call at the conclusion of the debate if requested in accordance with the rules of the appropriate House, the vote on final passage of the resolution shall occur.

   Inserted: (4) Appeals.--Appeals from the decisions of the Chair relating to the application of the rules of the Senate or the House of Representatives, as the case may be, to the procedure relating to a resolution described in subsection (a) shall be decided without debate.

   Inserted: (e) Consideration by Other House.--

   Inserted: (1) In general.--If, before the passage by one House of a resolution of that House described in subsection (a), that House receives from the other House a resolution described in subsection (a), then the following procedures shall apply:

   Inserted: (A) The resolution of the other House shall not be referred to a committee and may not be considered in the House receiving it except in the case of final passage as provided in subparagraph (B)(ii).

   Inserted: (B) With respect to a resolution described in subsection (a) of the House receiving the resolution--

   Inserted: (i) the procedure in that House shall be the same as if no resolution had been received from the other House; but

   Inserted: (ii) the vote on final passage shall be on the resolution of the other House.

   Inserted: (2) Disposition of a resolution.--Upon disposition of the resolution received from the other House, it shall no longer be in order to consider the resolution that originated in the receiving House.

   Inserted: (f) Rules of the Senate and House.--This section is enacted by Congress--

   Inserted: (1) as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House in the case of a resolution described in subsection (a), and it supersedes other rules only to the extent that it is inconsistent with such rules; and

   Inserted: (2) with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.

   Inserted: TITLE III--POSTAL SERVICE WORKFORCE

   Inserted: SEC. 301. MODIFICATIONS RELATING TO DETERMINATION OF PAY COMPARABILITY.

   Inserted: (a) Postal Policy.--The first sentence of section 101(c) is amended--

   Inserted: (1) by inserting "total" before "rates and types of compensation"; and

   Inserted: (2) by inserting "entire" before "private sector".

   Inserted: (b) Employment Policy.--The second sentence of section 1003(a) is amended--

   Inserted: (1) by inserting "total" before "compensation and benefits"; and

   Inserted: (2) by inserting "entire" before "private sector".

   Inserted: (c) Considerations.--For purposes of the amendments made by this section, any determination of "total rates and types of compensation" or "total compensation and benefits" shall, at a minimum, take into account pay, health benefits, retirement benefits, life insurance benefits, leave, holidays, and continuity and stability of employment.

   Inserted: SEC. 302. LIMITATION ON POSTAL CONTRIBUTIONS UNDER FEGLI AND FEHBP.

   Inserted: Section 1003 is amended by adding at the end the following:

   Inserted: "(e)(1) At least 1 month before the start of each fiscal year as described in paragraph (2), the Postmaster General shall transmit to the Postal Regulatory Commission certification (together with such supporting documentation as the Postal Regulatory Commission may require) that contributions of the Postal Service for such fiscal year will not exceed--

   Inserted: "(A) in the case of life insurance under chapter 87 of title 5, the Government contributions determined under section 8708 of such title; and

   Inserted: "(B) in the case of health insurance under chapter 89 of title 5, the Government contributions determined under 8906 of such title.

   Inserted: "(2) This subsection applies with respect to--

   Inserted: "(A) except as provided in subparagraph (B), each fiscal year beginning after September 30, 2013; and

   Inserted: "(B) in the case of officers and employees of the Postal Service covered by a collective bargaining agreement which is in effect on the date of the enactment of this subsection--

   Inserted: "(i) each fiscal year beginning after the expiration date of such agreement, including

   Inserted: "(ii) for the fiscal year in which such expiration date occurs, any portion of such fiscal year remaining after such expiration date.

   Inserted: "(3)(A) If, after reasonable notice and opportunity for hearing is afforded to the Postal Service, the Postal Regulatory Commission finds that the contributions of the Postal Service for a fiscal year will exceed or are exceeding the limitation specified in subparagraph (A) or (B) of paragraph (1), the Commission shall order that the Postal Service take such action as the Commission considers necessary to achieve full and immediate compliance with the applicable limitation or limitations.

   Inserted: "(B) Sections 3663 and 3664 shall apply with respect to any order issued by the Postal Regulatory Commission under subparagraph (A).

   Inserted: "(C) Nothing in this paragraph shall be considered to permit the issuance of an order requiring reduction of contributions below the level specified by the provision of law cited in subparagraph (A) or (B) of paragraph (1), as applicable.".

   Inserted: SEC. 303. REPEAL OF PROVISION RELATING TO OVERALL VALUE OF FRINGE BENEFITS.

   Inserted: The last sentence of section 1005(f) is repealed.

   Inserted: SEC. 304. APPLICABILITY OF REDUCTION-IN-FORCE PROCEDURES.

   Inserted: Section 1206 is amended by adding at the end the following:

   Inserted: "(d) Collective-bargaining agreements between the Postal Service and bargaining representatives recognized under section 1203, ratified after the date of enactment of this subsection, shall contain no provision restricting the applicability of reduction-in-force procedures under title 5 with respect to members of the applicable bargaining unit.

   Inserted: "(e) Any collective-bargaining agreement between the Postal Service and the bargaining representatives recognized under section 1203 ratified before the date of enactment of this Act that contain any provision violating subsection (d) shall be renegotiated with a new collective-bargaining agreement to be ratified or imposed through an arbitration decision under section 1207 within 9 months after such date of enactment.

   Inserted: "(f)(1) If a collective-bargaining agreement between the Postal Service and bargaining representatives recognized under section 1203, ratified after the date of enactment of this subsection, includes reduction-in-force procedures which can be applied in lieu of reduction-in-force procedures under title 5, the Postal Service may, in its discretion, apply with respect to members of the applicable bargaining unit--

   Inserted: "(A) the alternative procedures (or, if 2 or more are agreed to, 1 of the alternative procedures); or

   Inserted: "(B) the reduction-in-force procedures under title 5.

   Inserted: "(2) In no event may, if procedures for the resolution of a dispute or impasse arising in the negotiation of a collective-bargaining agreement (whether through binding arbitration or otherwise) are invoked under this chapter, the award or other resolution reached under such procedures provide for the elimination of, or the substitution of any alternative procedures in lieu of, reduction-in-force procedures under title 5.".

   Inserted: SEC. 305. MODIFICATIONS RELATING TO COLLECTIVE BARGAINING.

   Inserted: Section 1207 is amended by striking subsections (c) and (d) and inserting the following:

   Inserted: "(c)(1) If no agreement is reached within 30 days after the appointment of a mediator under subsection (b), or if the parties decide upon arbitration before the expiration of the 30-day period, an arbitration board shall be established consisting of 1 member selected by the Postal Service (from the list under paragraph (2)), 1 member selected by the bargaining representative of the employees (from the list under paragraph (2)), and the mediator appointed under subsection (b).

   Inserted: "(2) Upon receiving a request from either of the parties referred to in paragraph (1), the Director of the Federal Mediation and Conciliation Service shall provide a list of not less than 9 individuals who are well qualified to serve as neutral arbitrators. Each person listed shall be an arbitrator of nationwide reputation and professional nature, a member of the National Academy of Arbitrators, and an individual whom the Director has determined to be willing and available to serve. If, within 7 days after the list is provided, either of the parties has not selected an individual from the list, the Director shall make the selection within 3 days.

   Inserted: "(3) The arbitration board shall give the parties a full and fair hearing, including an opportunity to present evidence in support of their claims, and an opportunity to present their case in person, by counsel, or by other representative as they may elect. The hearing shall be concluded no more than 40 days after the arbitration board is established.

   Inserted: "(4) No more than 7 days after the hearing is concluded, each party shall submit to the arbitration board 2 offer packages, each of which packages shall specify the terms of a proposed final agreement.

   Inserted: "(5) If no agreement is reached within 7 days after the last day date for the submission of an offer package under paragraph (4), each party shall submit to the arbitration board a single final offer package specifying the terms of a proposed final agreement.

   Inserted: "(6) No later than 3 days after the submission of the final offer packages under paragraph (5), the arbitration board shall select 1 of those packages as its tentative award, subject to paragraph (7).

   Inserted: "(7)(A) The arbitration board may not select a final offer package under paragraph (6) unless it satisfies each of the following:

   Inserted: "(i) The offer complies with the requirements of sections 101(c) and 1003(a).

   Inserted: "(ii) The offer takes into account the current financial condition of the Postal Service.

   Inserted: "(iii) The offer takes into account the long-term financial condition of the Postal Service.

   Inserted: "(B)(i) If the board unanimously determines, based on clear and convincing evidence presented during the hearing under paragraph (3), that neither final offer package satisfies the conditions set forth in subparagraph (A), the board shall by majority vote--

   Inserted: "(I) select the package that best meets such conditions; and

   Inserted: "(II) modify the package so selected to the minimum extent necessary to satisfy such conditions.

   Inserted: "(ii) If modification (as described in subparagraph (B)(i)(II)) is necessary, the board shall have an additional 7 days to render its tentative award under this subparagraph.

   Inserted: "(8) The parties may negotiate a substitute award to replace the tentative award selected under paragraph (6) or rendered under paragraph (7) (as the case may be). If no agreement on a substitute award is reached within 10 days after the date on which the tentative award is so selected or rendered, the tentative award shall become final.

   Inserted: "(9) The arbitration board shall review any substitute award negotiated under paragraph (8) to determine if it satisfies the conditions set forth in paragraph (7)(A). If the arbitration board, by a unanimous vote taken within 3 days after the date on which the agreement on the substitute award is reached under paragraph (8), determines that the substitute award does not satisfy such conditions, the tentative award shall become final. In the absence of a vote, as described in the preceding sentence, the substitute agreement shall become final.

   Inserted: "(10) If, under paragraph (5), neither party submits a final offer package by the last day allowable under such paragraph, the arbitration board shall develop and issue a final award no later than 20 days after such last day.

   Inserted: "(11) A final award or agreement under this subsection shall be conclusive and binding upon the parties.

   Inserted: "(12) Costs of the arbitration board and mediation shall be shared equally by the Postal Service and the bargaining representative.

   Inserted: "(d) In the case of a bargaining unit whose recognized collective-bargaining representative does not have an agreement with the Postal Service, if the parties fail to reach agreement within 90 days after the commencement of collective bargaining, a mediator shall be appointed in accordance with the provisions of subsection (b), unless the parties have previously agreed to another procedure for a binding resolution of their differences. If the parties fail to reach agreement within 180 days after the commencement of collective bargaining, an arbitration board shall be established to provide conclusive and binding arbitration in accordance with the provisions of subsection (c).".

   Inserted: TITLE IV--FEDERAL EMPLOYEE'S COMPENSATION ACT

   Inserted: SEC. 401. SHORT TITLE; REFERENCES.

   (a) Short Title.--This title may be cited as the "Workers' Compensation Reform Act of 2012".

   (b) References.--Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in terms of an amendment to, or a repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of title 5, United States Code.

   SEC. [struck: 302][inserted: 402]. FEDERAL WORKERS COMPENSATION REFORMS FOR RETIREMENT-AGE EMPLOYEES.

   (a) Conversion of Entitlement at Retirement Age.--

   (1) Definitions.--Section 8101 is amended[struck: (A) in paragraph (18), by striking "and" at the end;]

   Inserted: (A) in paragraph (18), by striking "and" at the end;

   (B) in paragraph (19), by striking "and" at the end;

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

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   (D) by adding at the end the following:

   "(21) 'retirement age' has the meaning given that term under section 216(l)(1) of the Social Security Act (42 U.S.C. 416(l)(1));

   "(22) 'covered claim for total disability' means a claim for a period of total disability that commenced before the date of enactment of the Workers' Compensation Reform Act of 2012;

   "(23) 'covered claim for partial disability' means a claim for a period of partial disability that commenced before the date of enactment of the Workers' Compensation Reform Act of 2012; and

   "(24) 'individual who has an exempt disability condition' means an individual--

   "(A) who--

   "(i) is eligible to receive continuous periodic compensation for total disability under section 8105 on the date of enactment of the Workers' Compensation Reform Act of 2012; and

   "(ii) meets the criteria under [struck: section ]8105(c);

   "(B) who, on the date of enactment of the Workers' Compensation Reform Act of 2012--

   "(i) is eligible to receive continuous periodic compensation for total disability under section 8105; and

   "(ii) has sustained a currently irreversible severe mental or physical disability for which the Secretary of Labor has authorized, for at least the [struck: 1-year ][inserted: 1 year ]period ending on the date of enactment of the Workers' Compensation Reform Act of 2012, constant [struck: in- home ][inserted: in-home ]care or custodial care, such as [inserted: in ]placement in a nursing home; or

   "(C) who is eligible to receive continuous periodic compensation for total disability under section 8105--

   "(i) for not less than the 3-year period ending on the date of enactment of the Workers' Compensation Reform Act of 2012; or

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   "(ii) if the individual became eligible to receive continuous periodic compensation for total disability under section 8105 during the period beginning on the date that is 3 years before the date of enactment of the Workers' Compensation Reform Act of 2012 and ending on such date of enactment, for not less than the 3-year period beginning on the date on which the individual became eligible.".

   (2) Total disability.--Section 8105 is amended--

   (A) in subsection (a), by striking "If" and inserting "In General.--Subject to subsection (b), if";

   (B) by redesignating subsection (b) as subsection (c); and

   (C) by inserting after subsection (a) the following:

   "(b) Conversion of Entitlement at Retirement Age.--

   "(1) In general.--Except as provided in paragraph (2), the basic compensation for total disability for an employee who has attained retirement age shall be 50 percent of the monthly pay of the employee.

   "(2) Exceptions.--

   "(A) Covered recipients who are retirement age or have an exempt disability condition.--Paragraph (1) shall not apply to a covered claim for total disability by an employee if the employee--

   "(i) on the date of enactment of the Workers' Compensation Reform Act of 2012, has attained retirement age; or

   "(ii) is an individual who has an exempt disability condition.

   "(B) Transition period for certain employees.--For a covered claim for total disability by an employee who is not an employee described in subparagraph (A), the employee shall receive the basic compensation for total disability provided under subsection (a) until the later of--

   "(i) the date on which the employee attains retirement age; and

   "(ii) the date that is 3 years after the date of enactment of the Workers' Compensation Reform Act of 2012.".

   (3) Partial disability.--Section 8106 is amended--

   (A) in subsection (a), by striking "If" and inserting "In General.--Subject to subsection (b), if";

   (B) by redesignating subsections (b) and (c) as subsections (c) and (d), respectively; and

   (C) by inserting after subsection (a) the following:

   "(b) Conversion of Entitlement at Retirement Age.--

   "(1) In general.--Except as provided in paragraph (2), the basic compensation for partial disability for an employee who has attained retirement age shall be 50 percent of the difference between the monthly pay of the employee and the monthly wage-earning capacity of the employee after the beginning of the partial disability.

   "(2) Exceptions.--

   "(A) Covered recipients who are retirement age.--[struck: ]Paragraph (1) shall not apply to a covered claim for partial disability by an employee if, on the date of enactment of the Workers' Compensation Reform Act of 2012, the employee has attained retirement age.

   "(B) Transition period for certain employees.--For a covered claim for partial disability by an employee who is not an employee described in subparagraph (A), the employee shall receive basic compensation for partial disability in accordance with subsection (a) until the later of--

   "(i) the date on which the employee attains retirement age; and

   "(ii) the date that is 3 years after the date of enactment of the Workers' Compensation Reform Act of 2012.".

   SEC. [struck: 303][inserted: 403]. AUGMENTED COMPENSATION FOR DEPENDENTS.

   (a) In General.--Section 8110 is amended--

   (1) by redesignating subsection (b) as subsection (c); and

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   (2) by inserting after subsection (a) the following:

   "(b) Termination of Augmented Compensation.--

   "(1) In general.--Subject to paragraph (2), augmented compensation for dependants under subsection (c) shall not be provided.

   "(2) Exceptions.--

   "(A) Total disability.--For a covered claim for total disability by an employee--

   "(i) the employee shall receive augmented compensation under subsection (c) if the employee is an individual who has an exempt disability condition; and

   "(ii) the employee shall receive augmented compensation under subsection (c) until the date that is 3 years after the date of enactment of the Workers' Compensation Reform Act of 2012 if the employee is not an employee described in clause (i).

   "(B) Partial disability.--For a covered claim for partial disability by an employee, the employee shall receive augmented compensation under subsection (c) until the date that is 3 years after the date of enactment of the Workers' Compensation Reform Act of 2012.

   "(C) Permanent disability compensated by a schedule.--For a claim for a permanent disability described in section 8107(a) by an employee that commenced before the date of enactment of the Workers' Compensation Reform Act of 2012, the employee shall receive augmented compensation under subsection (c).".

   (b) Maximum and Minimum Monthly Payments.--Section 8112 is amended--

   (1) in subsection (a)--

   (A) by inserting "subsections (b) and (c) and" before "section 8138";

   (B) by striking "including augmented compensation under section 8110 of this title but"; and

   (C) by striking "75 percent" each place it appears and inserting "66[inserted: ]\2/3\ percent";

   (2) by redesignating subsection (b) as subsection (c);

   (3) by inserting after subsection (a) the following:

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   "(b) Exceptions.--

   "(1) Covered disability condition.--For a covered claim for total disability by an employee, if the employee is an individual who has an exempt disability condition--

   "(A) the monthly rate of compensation for disability that is subject to the maximum and minimum monthly amounts under subsection (a) shall include any augmented compensation under section 8110; and

   "(B) subsection (a) shall be applied by substituting '75 percent' for '66[inserted: ]\2/3\ percent' each place it appears.

   "(2) Partial disability.--For a covered claim for partial disability by an employee, until the date that is 3 years after the date of enactment of the Workers' Compensation Reform Act of 2012--

   "(A) the monthly rate of compensation for disability that is subject to the maximum and minimum monthly amounts under subsection (a) shall include any augmented compensation under section 8110; and

   "(B) subsection (a) shall be applied by substituting '75 percent' for '66[inserted: ]\2/3\ percent' each place it appears."; and

   (4) in subsection (c), as redesignated by paragraph (2), by striking "subsection (a)" and inserting "subsections (a) and (b)".

   (c) Death Benefits Generally.--Section 8133 is amended--

   (1) in subsections (a) and (e), by striking "75 percent" each place it appears and inserting "66 \2/3\ percent (except as provided in subsection (g))"; and

   (2) by adding at the end the following:

   "(g) If the death occurred before the date of enactment of the Workers' Compensation Reform Act of 2012, subsections (a) and (e) shall be applied by substituting '75 percent' for '66[inserted: ]\2/3\ percent' each place it appears.".

   (d) Death Benefits for Civil Air Patrol Volunteers.--Section 8141 is amended--

   (1) in subsection (b)(2)(B) by striking "75 percent" and inserting "66[inserted: ]\2/3\ percent (except as provided in subsection (c))";

   (2) by redesignating subsection (c) as subsection (d); and

   (3) by inserting after subsection (b) the following:

   "(c) If the death occurred before the date of enactment of the Workers' Compensation Reform Act of 2012, subsection (b)(2)(B) shall be applied by substituting '75 percent' for '66[inserted: ]\2/3\ percent'.".

   SEC. [struck: 304][inserted: 404]. SCHEDULE COMPENSATION PAYMENTS.

   Section 8107 is amended--

   (1) in subsection (a), by striking "at the rate of 66[struck: \][inserted: ]2/3[struck: \] percent of his monthly pay" and inserting "at the rate specified under subsection (d)"; and

   (2) by adding at the end the following:

   "(d) Rate for Compensation.--

   "(1) Annual salary.--

   "(A) In general.--Except as provided in paragraph (2), the rate under subsection (a) shall be the rate of 66[inserted: ]\2/3\ percent of the annual salary level established under subparagraph (B), in a lump sum equal to the present value (as calculated under subparagraph (C)) of the amount of compensation payable under the schedule.

   "(B) Establishment.--

   "(i) In general.--The Secretary of Labor shall establish an annual salary for purposes of subparagraph (A) in the amount the Secretary determines will result in the aggregate cost of payments made under this section being equal to what would have been the aggregate cost of payments under this section if the amendments made by section 304(a) of the Workers' Compensation Reform Act of 2012 had not been enacted.

   "(ii) Cost of living adjustment.--The annual salary established under clause (i) shall be increased on March 1 of each year by the amount determined by the Secretary of Labor to represent the percent change in the price index published for December of the preceding year over the price index published for the December of the year prior to the preceding year, adjusted to the nearest one-tenth of 1 percent.

   "(C) Present value.--The Secretary of Labor shall calculate the present value for purposes of subparagraph (A) using a rate of interest equal to the average market yield for outstanding marketable obligations of the United States with a maturity of 2 years on the first business day of the month in which the compensation is paid or, in the event that such marketable obligations are not being issued on such date, at an equivalent rate selected by the Secretary of Labor, true discount compounded annually.

   "(2) Certain injuries.--For an injury that occurred before the date of enactment of the Workers' Compensation Reform Act of 2012, the rate under subsection (a) shall be 66[inserted: ]\2/3\ percent of the employee's monthly pay.

   "(e) Simultaneous Receipt.--

   "(1) Total disability.--An employee who receives compensation for total disability under section 8105 may only receive the lump sum of schedule compensation under this section in addition to and simultaneously with the benefits for total disability after the [struck: earlier][inserted: later] of--

   "(A) the date on which the basic compensation for total disability of the employee becomes 50 percent of the monthly pay of the employee under section 8105(b); or

   "(B) the date on which augmented compensation of the employee terminates under section 8110(b)(2)(A)(ii), if the employee receives such compensation.

   "(2) Partial disability.--An employee who receives benefits for partial disability under section 8106 may only receive the lump sum of schedule compensation under this section in addition to and simultaneously with the benefits for partial disability after the [struck: earlier][inserted: later] of--

   "(A) the date on which the basic compensation for partial disability of the employee becomes 50 percent of the difference between the monthly pay of the employee and the monthly wage-earning capacity of the employee after the beginning of the partial disability under section 8106(b); or

   "(B) the date on which augmented compensation of the employee terminates under section 8110(b)(2)(B), if the employee receives such compensation.".

   SEC. [struck: 305][inserted: 405]. VOCATIONAL REHABILITATION.

   (a) In General.--Section 8104 is amended--

   (1) in subsection (a)--

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   (A) by striking "(a) The Secretary of Labor may" and all that follows through "undergo vocational rehabilitation." and inserting the following:

   "(a) In General.--

   "(1) Direction.--Except as provided in paragraph (2), not earlier than the date that is 6 months after the date on which an individual eligible for wage-loss compensation under section 8105 or 8106 is injured, or by such other date as the Secretary of Labor determines it would be reasonable under the circumstances for the individual to begin vocational rehabilitation, and if vocational rehabilitation may enable the individual to become capable of more gainful employment, the Secretary of Labor shall direct the individual to participate in developing a comprehensive return to work plan and to undergo vocational rehabilitation at a location a reasonable distance from the residence of the individual.";

   (B) by striking "the Secretary of Health, Education, and Welfare in carrying out the purposes of chapter 4 of title 29" and inserting "the Secretary of Education in carrying out the purposes of the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.)";

   (C) by striking "under section 32(b)(1) of title 29" and inserting "under section 5 of the Rehabilitation Act of 1973 (29 U.S.C. 704)"; and

   (D) by adding at the end the following:

   "(2) Exception.--The Secretary of Labor may not direct an individual who has attained retirement age to participate in developing a comprehensive return to work plan or to undergo vocational rehabilitation.";

   (2) by redesignating subsection (b) as subsection (c);

   (3) by inserting after subsection (a) the following:

   "(b) Contents of Return to Work Plan.--A return to work plan developed under subsection (a)--

   "(1) shall--

   "(A) set forth specific measures designed to increase the wage-earning capacity of an individual;

   "(B) take into account the prior training and education of the individual and the training, educational, and employment opportunities reasonably available to the individual; and

   "(C) provide that any employment undertaken by the individual under the return to work plan be at a location a reasonable distance from the residence of the individual;

   "(2) may provide that the Secretary will pay out of amounts in the Employees' Compensation Fund reasonable expenses of vocational rehabilitation (which may include tuition, books, training fees, supplies, equipment, and child or dependent care) during the course of the plan; and

   "(3) may not be for a period of more than 2 years, unless the Secretary finds good cause to grant an extension, which may be for not more than 2 years.";

   (4) in subsection (c), as so redesignated--

   (A) by inserting "Compensation.--" before "Notwithstanding"; and

   (B) by striking ", other than employment undertaken pursuant to such rehabilitation"; and

   (5) by adding at the end the following:

   "(d) Assisted Reemployment Agreements.--

   "(1) In general.--The Secretary may enter into an assisted reemployment agreement with an agency or instrumentality of any branch of the Federal Government or a State or local government or a private employer that employs an individual eligible for wage-loss compensation under section 8105 or 8106 to enable the individual to return to productive employment.

   "(2) Contents.--An assisted reemployment agreement under paragraph (1)--

   "(A) may provide that the Secretary will use amounts in the Employees' Compensation Fund to reimburse an employer in an amount equal to not more than 100 percent of the compensation the individual would otherwise receive under section 8105 or 8106; and

   "(B) may not be for a period of more than 3 years.

   "(e) List.--To facilitate the hiring of individuals eligible for wage-loss compensation under section 8105 or 8106, the Secretary shall provide a list of such individuals to the Office of Personnel Management, which the Office of Personnel Management shall provide to all agencies and instrumentalities of the Federal Government.".

   Struck: (b) Employees' Compensation Fund.--Section 8147 is amended by adding at the end:

   Struck: "(d) Notwithstanding subsection (b), any benefits or other payments paid to or on behalf of an employee under this subchapter or any extension or application thereof for a recurrence of injury, consequential injury, aggravation of injury, or increase in percentage of impairment to a member for which compensation is provided under the schedule under section 8107 suffered in a permanent position with an agency or instrumentality of the United States while the employment with the agency or instrumentality is covered under an assisted reemployment agreement entered into under section 8104(d) shall not be included in total cost of benefits and other payments in the statement provided to the agency or instrumentality under subsection (b) if the injury was originally incurred in a position not covered by an assisted reemployment agreement.".

   ([struck: c][inserted: b]) Termination of Vocational Rehabilitation Requirement After Retirement Age.--Section 8113(b) is amended by adding at the end the following: "An individual who has attained retirement age may not be required to undergo vocational rehabilitation.".

   ([struck: d][inserted: c]) Mandatory Benefit Reduction for Noncompliance.--Section 8113(b) is amended by striking "may reduce" and inserting "shall reduce".

   ([struck: e][inserted: d]) Technical and Conforming Amendments.--

   (1) In general.--Subchapter III of chapter 15 of title 31, United States Code, is amended by adding at the end the following:

   "Sec. 1538. Authorization for assisted reemployment "Funds may be transferred from the Employees' Compensation Fund established under section 8147 of title 5 to the applicable appropriations account for an agency or instrumentality of any branch of the Federal Government for the purposes of reimbursing the agency or instrumentality in accordance with an assisted reemployment agreement entered into under section 8104 of title 5.".

   (2) Table of sections.--The table of sections for chapter 15 of title 31, United States Code, is amended by inserting after the item relating to section 1537 the following:

   "1538. Authorization for assisted reemployment.".

   SEC. [struck: 306][inserted: 406]. REPORTING REQUIREMENTS.

   (a) In General.--Chapter 81 is amended by inserting after section 8106 the following:

   "Sec. 8106a. Reporting requirements

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   "(a) Definition.--In this section, the term 'employee receiving compensation' means an employee who--

   "(1) is paid compensation under section 8105 or 8106; and

   "(2) has not attained retirement age.

   "(b) Authority.--The Secretary of Labor shall require an employee receiving compensation to report the earnings of the employee receiving compensation from employment or self-employment, by affidavit or otherwise, in the manner and at the times the Secretary specifies.

   "(c) Contents.--An employee receiving compensation shall include in a report required under subsection (a) the value of housing, board, lodging, and other advantages which are part of the earnings of the employee receiving compensation in employment or self-employment and the value of which can be estimated.

   "(d) Failure To Report and False Reports.--

   "(1) In general.--An employee receiving compensation who fails to make an affidavit or other report required under subsection (b) or who knowingly omits or understates any part of the earnings of the employee in such an affidavit or other report shall forfeit the right to compensation with respect to any period for which the report was required.

   "(2) Forfeited compensation.--Compensation forfeited under this subsection, if already paid to the employee receiving compensation, shall be recovered by a deduction from the compensation payable to the employee or otherwise recovered under section 8129, unless recovery is waived under that section.".

   (b) Technical and Conforming Amendments.--The table of sections for chapter 81 is amended by inserting after the item relating to section 8106 the following:

   "8106a. Reporting requirements.".

   SEC. [struck: 307][inserted: 407]. DISABILITY MANAGEMENT REVIEW; INDEPENDENT MEDICAL EXAMINATIONS.

   Section 8123 is amended by adding at the end the following:

   "(e) Disability Management Review.--

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   "(1) Definitions.--In this subsection--

   "(A) the term 'covered employee' means an employee who is in continuous receipt of compensation for total disability under section 8105 for a period of not less than 6 months; and

   "(B) the term 'disability management review process' means the disability management review process established under paragraph (2)(A).

   "(2) Establishment.--The Secretary of Labor shall--

   "(A) establish a disability management review process for the purpose of certifying and monitoring the disability status and extent of injury of each covered employee; and

   "(B) promulgate regulations for the administration of the disability management review process.

   "(3) Physical examinations required.--Under the disability management review process, the Secretary of Labor shall periodically require covered employees to submit to physical examinations under subsection (a) by physicians selected by the Secretary. A physician conducting a physical examination of a covered employee shall submit to the Secretary a report regarding the nature and extent of the injury to and disability of the covered employee.

   "(4) Frequency.--

   "(A) In general.--The regulations promulgated under paragraph (2)(B) shall specify the process and criteria for determining when and how frequently a physical examination should be conducted for a covered employee.

   "(B) Minimum frequency.--

   "(i) Initial.--An initial physical examination shall be conducted not more than a brief period after the date on which a covered employee has been in continuous receipt of compensation for total disability under section 8015 for 6 months.

   "(ii) Subsequent examinations.--After the initial physical examination, physical examinations of a covered employee shall be conducted not less than once every 3 years.

   "(5) Employing agency or instrumentality requests.--

   "(A) In general.--The agency or instrumentality employing an employee who has made a claim for compensation for total disability under section 8105 may at any time submit a request for the Secretary of Labor to promptly require the employee to submit to a physical examination under this subsection.

   "(B) Requesting officer.--A request under subparagraph (A) shall be made on behalf of an agency or instrumentality by--

   "(i) the head of the agency or instrumentality;

   "(ii) the Chief Human Capital Officer of the agency or instrumentality; or

   "(iii) if the agency or instrumentality does not have a Chief Human Capital Officer, an officer with responsibilities similar to those of a Chief Human Capital Officer designated by the head of the agency or instrumentality to make requests under this paragraph.

   "(C) Information.--A request under subparagraph (A) shall be in writing and accompanied by--

   "(i) a certification by the officer making the request that the officer has reviewed the relevant material in the employee's file;

   "(ii) an explanation of why the officer has determined, based on the materials in the file and other information known to the officer, that requiring a physical examination of the employee under this subsection is necessary; and

   "(iii) copies of the materials relating to the employee that are relevant to the officer's determination and request, unless the agency or instrumentality has a reasonable basis for not providing the materials.

   "(D) Examination.--If the Secretary of Labor receives a request under this paragraph before an employee has undergone an initial physical examination under paragraph (4)(B)(i), the Secretary shall promptly require the physical examination of the employee. A physical examination under this subparagraph shall satisfy the requirement under paragraph (4)(B)(i) that an initial physical examination be conducted.

   "(E) After initial examination.--

   "(i) In general.--If the Secretary of Labor receives a request under this paragraph after an employee has undergone an initial physical examination under paragraph (4)(B)(i), the Secretary shall--

   "(I) review the request and the information, explanation, and other materials submitted with the request; and

   "(II) determine whether to require the physical examination of the employee who is the subject of the request.

   "(ii) Not granted.--If the Secretary determines not to grant a request described in clause (i), the Secretary shall promptly notify the officer who made the request and provide an explanation of the reasons why the request was denied.".

   SEC. [struck: 308][inserted: 408]. WAITING PERIOD.

   (a) In General.--Section 8117 is amended--

   (1) in the section heading, by striking "Time of accrual of right" and inserting "Waiting period";

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   (2) in subsection (a)--

   (A) in the matter preceding paragraph (1), by striking "An employee" and all that follows through "is not entitled" and inserting "In General.--An employee is not entitled to continuation of pay within the meaning of section 8118 for the first 3 days of temporary disability or, if section 8118 does not apply, is not entitled";

   (B) in paragraph (1), by adding "or" at the end;

   (C) by striking paragraph (2); and

   (D) by redesignating paragraph (3) as paragraph (2); and

   (3) in subsection (b)--

   (A) by striking "A Postal Service" the first place it appears and all that follows through "A Postal Service" the second place it appears and inserting "Use of Leave.--An";

   (B) by striking "that 3-day period" and inserting "the first 3 days of temporary disability"; and

   (C) by striking "or is followed by permanent disability".

   (b) Continuation of Pay.--Section 8118 is amended--

   (1) in the section heading, by striking "; election to use annual or sick leave";

   (2) in subsection (b)(1), by striking "section 8117(b)" and inserting "section 8117";

   (3) by striking subsection (c); and

   (4) by redesignating subsections (d) and (e) as subsections (c) and (d), respectively.

   (c) Technical and Conforming Amendments.--The table of sections for chapter 81 is amended by striking the items relating to sections 8117 and 8118 and inserting the following:

   "8117. Waiting period.[struck: "8118. Continuation of pay.".]

   Inserted: "8118. Continuation of pay.".

   SEC. [struck: 309][inserted: 409]. ELECTION OF BENEFITS.

   (a) In General.--Section 8116 is amended by adding at the end the following:

   "(e) Retirement Benefits.--

   "(1) In general.--An individual entitled to compensation benefits payable under this subchapter and under chapter 83 or 84 or any other retirement system for employees of the Government, for the same period, shall elect which benefits the individual will receive.

   "(2) Election.--

   "(A) Deadline.--An individual shall make an election under paragraph (1) in accordance with such deadlines as the Secretary of Labor shall establish[struck: , which shall be a reasonable period after the individual has received notice of a final determination that the individual is entitled to compensation benefits payable under this subchapter].

   "(B) Revocability.--An election under paragraph (1) shall be revocable, notwithstanding any other provision of law, except for any period during which an individual--

   "(i) was qualified for benefits payable under both this subchapter and under a retirement system described in paragraph (1); and

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   "(ii) was paid benefits under the retirement system after having been notified of eligibility for benefits under this subchapter.

   "(3) Informed choice.--The Secretary of Labor shall provide information, and shall ensure that information is provided, to an individual described in paragraph (1) about the benefits available to the individual under this subchapter or under chapter 83 or 84 or any other retirement system referred to in paragraph (1) the individual may elect to receive.".

   (b) Technical and Conforming Amendments.--Sections 8337(f)(3) and 8464a(a)(3) are each amended by striking "Paragraphs" and inserting "Except as provided under chapter 81, paragraphs".

   SEC. [struck: 310][inserted: 410]. SANCTION FOR NONCOOPERATION WITH FIELD NURSES.

   Section 8123, as amended by section 307, is amended by adding at the end the following:

   "(f) Field Nurses.--

   "(1) Definition.--In this subsection, the term 'field nurse' means a registered nurse that assists the Secretary in the medical management of disability claims under this subchapter and provides claimants with assistance in coordinating medical care.

   "(2) Authorization.--The Secretary may use field nurses to coordinate medical services and vocational rehabilitation programs for injured employees under this subchapter. If an employee refuses to cooperate with a field nurse or obstructs a field nurse in the performance of duties under this subchapter, the right to compensation under this subchapter shall be suspended until the refusal or obstruction stops.".

   SEC. [struck: 311][inserted: 411]. SUBROGATION OF CONTINUATION OF PAY.

   (a) In General.--Section 8131 is amended--

   (1) in subsection (a), in the matter preceding paragraph (1), by inserting "continuation of pay or" before "compensation";[inserted: and]

   (2) in subsection (b), by inserting "continuation of pay[struck: or]" before [struck: "]compensation[struck: "]; and

   (3) in subsection (c)--

   (A) by inserting "continuation of pay or" before "compensation already paid"; and

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   (B) by inserting "continuation of pay or" before "compensation payable".

   (b) Adjustment After Recovery From a Third Person.--Section 8132 is amended--

   (1) in the first sentence--

   (A) by inserting "continuation of pay or" before "compensation is payable";

   (B) by inserting "continuation of pay or" before "compensation from the United States";

   (C) by striking "by him or in his behalf" and inserting "by the beneficiary or on behalf of the beneficiary";

   (D) by inserting "continuation of pay and" before "compensation paid by the United States"; and

   (E) by striking "compensation payable to him" and inserting "continuation of pay or compensation payable to the beneficiary";

   (2) in the second sentence, by striking "his designee" and inserting "the designee of the beneficiary"; and

   (3) in the fourth sentence, by striking "If compensation" and all that follows through "payable to him by the United States" and inserting "If continuation of pay or compensation has not been paid to the beneficiary, the money or property shall be credited against continuation of pay or compensation payable to the beneficiary by the United States".

   Struck: SEC. 312. INTEGRITY AND COMPLIANCE.

   Inserted: SEC. 412. SOCIAL SECURITY EARNINGS INFORMATION.

   [struck: (a) In General.--Subchapter I of chapter 81][inserted: Section 8116, as amended by section 308,] is amended by adding at the end the following:

   Struck: "Sec. 8153. Integrity and Compliance Program

   Struck: "(a) Definitions.--In this section--

   Struck: "(1) the term 'FECA program' means the Federal Employees Compensation Program administered under this subchapter;

   Struck: "(2) the term 'Integrity and Compliance Program' means the Integrity and Compliance Program established under subsection (b);

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   Struck: "(3) the term 'provider' means a provider of medical or other services under the FECA program; and

   Struck: "(4) the term 'Secretary' means the Secretary of Labor.

   Struck: "(b) Integrity and Compliance Program.--Not later than 270 days after the date of enactment of this section, the Secretary shall establish an Integrity and Compliance Program for the purpose of preventing, identifying, and recovering improper payments (including improper payments obtained by fraud) for the FECA program, which shall include--

   Struck: "(1) procedures for identifying potentially improper payments (including improper payments obtained by fraud) before payment is made to claimants and providers, including, where appropriate, predictive analytics;

   Struck: "(2) reviews after payment is made to identify potentially improper payments (including improper payments obtained by fraud) to claimants and providers;

   Struck: "(3) on-going screening and verification procedures to ensure the continued eligibility of medical providers to provide services under the FECA program, including licensure, Federal disbarment, and the existence of relevant criminal convictions;

   Struck: "(4) provision of appropriate information, education, and training to claimants and providers on requirements to ensure the integrity of the FECA program, including payments under the FECA program;

   Struck: "(5) appropriate controls and audits to ensure that providers adopt internal controls and procedures for compliance with requirements under the FECA program;

   Struck: "(6) procedures to ensure--

   Struck: "(A) initial and continuing eligibility of claimants for compensation, benefits, or services under the FECA program; and

   Struck: "(B) ongoing verification of databases of information relating to claimants to ensure accuracy and completeness; and

   Struck: "(7) appropriately sharing and accessing data and information with other agencies and instrumentalities of the United States, including the United States Postal Service.

   Struck: "(c) Interagency Cooperation on Anti-fraud Efforts.--

   Struck: "(1) In general.--In administering the FECA program, including the Integrity and Compliance Program, the Secretary shall cooperate with other agencies and instrumentalities of the United States (including the United States Postal Service) and the Inspectors General of such agencies and instrumentalities to prevent, identify, and recover improper payments (including improper payments obtained by fraud) under the FECA program.

   Struck: "(2) Task force.--

   Struck: "(A) In general.--There is established a task force, which shall be known as the FECA Integrity and Compliance Task Force (in this paragraph referred to as the 'Task Force').

   Struck: "(B) Membership.--The members of the Task Force shall be--

   Struck: "(i) the Secretary, who shall serve as the Chairperson of the Task Force;

   Struck: "(ii) the Postmaster General, who shall serve as the Vice Chairperson of the Task Force;

   Struck: "(iii) the Attorney General;

   Struck: "(iv) the Director of the Office of Management and Budget;

   Struck: "(v) the Inspector General of the Department of Labor;

   Struck: "(vi) the Inspector General of the United States Postal Service;

   Struck: "(vii) the Inspectors General of other appropriate agencies and instrumentalities of the United States that employ a significant number of individuals receiving compensation, benefits, or services under the FECA program, as determined by the Chairperson and Vice Chairperson of the Task Force; and

   Struck: "(viii) other appropriate Federal officials, as determined by the Chairperson and Vice Chairperson of the Task Force.

   Struck: "(C) Duties.--The Task Force shall--

   Struck: "(i) set forth, in writing, a description of the respective roles and responsibilities in preventing, identifying, recovering, and prosecuting fraud under, and otherwise ensuring integrity and compliance of, the FECA program of--

   Struck: "(I) the Secretary (including subordinate officials such as the Director of the Office of Workers' Compensation Programs);

   Struck: "(II) the Inspector General of the Department of Labor;

   Struck: "(III) the Inspectors General of agencies and instrumentalities of the United States that employ claimants under the FECA program;

   Struck: "(IV) the Attorney General; and

   Struck: "(V) any other relevant officials;

   Struck: "(ii) develop procedures for sharing information of possible fraud under the FECA program or other intentional misstatements by claimants or providers under the FECA program, including procedures addressing--

   Struck: "(I) notification of appropriate officials of the Department of Labor of potential fraud or intentional misstatements, including provision of supporting information;

   Struck: "(II) timely and appropriate response by officials of the Department of Labor to notifications described in subclause (I);

   Struck: "(III) the inclusion of information and evidence relating to fraud and other intentional misstatements in criminal, civil, and administrative proceedings relating to the provision of compensation, benefits, or medical services (including payments to providers) under the FECA program;

   Struck: "(IV) the coordination of criminal investigations with the administration of the FECA program; and

   Struck: "(V) the protection of information relating to an investigation of possible fraud under the FECA program from potential disclosure, including requirements that enable investigative files to be appropriately separated from case management files;

   Struck: "(iii) not later than 1 year after the date of enactment of this section, submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform and the Committee on Education and the Workforce of the House of Representatives a report that includes the description and procedures required under clauses (i) and (ii).

   Struck: "(d) Improvements to Access of Federal Databases.--

   Struck: "(1) In general.--The Secretary, the Postmaster General, the Inspector General of the United States Postal Service, and the Inspector General of the Department of Labor shall have access to and make use of the agency databases described in this subsection in order to improve compliance with the requirements under and the integrity of the FECA program.

   Struck: "(2) Social security earnings information.--

   "([struck: A][inserted: f]) [struck: In general][inserted: Earnings Information].--Notwithstanding section 552a or any other provision of Federal or State law, [struck: upon written request, ]the [struck: Commissioner of ]Social Security [inserted: Administration ]shall make available to the Secretary[struck: , ][inserted: of Labor, upon written request, ]the [struck: Inspector General ][inserted: Social Security earnings information ]of [struck: the Department of Labor, the Postmaster General, and the Inspector General of the United States Postal Service the Social Security earnings information ][inserted: a living or deceased employee who may have sustained an injury or died as a result of an injury that is the subject ]of a [struck: living or deceased employee][inserted: claim under this subchapter] required by the Secretary [inserted: of Labor ]to carry out this subchapter.[inserted: ".]

   Struck: "(B) Procedures.--The Secretary shall establish procedures for correlating the identity and status of recipients of compensation, benefits, or services under this subchapter with Social Security earnings information described in subparagraph (A).

   Struck: "(3) Office of personnel management federal retiree database.--Notwithstanding section 552a or any other provision of Federal or State law, upon written request, the Director of the Office of Personnel Management shall make available to the Secretary, the Inspector General of the Department of Labor, the Postmaster General, and the Inspector General of the United States Postal Service the information in the databases of Federal employees and retirees maintained by the Director.

   Struck: "(4) Department of veterans affairs beneficiaries database.--Notwithstanding section 552a or any other provision of Federal or State law, upon written request, the Secretary of Veterans Affairs shall make available to the Secretary, the Inspector General of the Department of Labor, the Postmaster General, and the Inspector General of the United States Postal Service the information in the database of disabled individuals maintained by the Secretary of Veterans Affairs.

   Struck: "(5) National directory of new hires.--Notwithstanding section 552a, section 453(j) of the Social Security Act (42 U.S.C. 653(j)), or any other provision of Federal or State law, upon written request, the Secretary of Health and Human Services shall make available to the Secretary, the Inspector General of the Department of Labor, the Postmaster General, the Inspector General of the United States Postal Service, and the Comptroller General of the United States the information in the National Directory of New Hires. The Comptroller General may obtain information from the National Directory of New Hires under this paragraph for any audit, evaluation, or investigation, including any audit, evaluation, or investigation relating to program integrity.

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   Struck: "(6) Provision.--Information requested under this subsection shall be provided--

   Struck: "(A) in a timely manner;

   Struck: "(B) at a reasonable cost to the Secretary, the Inspector General of the Department of Labor, the Postmaster General, the Inspector General of the United States Postal Service, or the Comptroller General of the United States; and

   Struck: "(C) in the manner, frequency, and form reasonably specified by the officer making the request, which, upon request, shall include electronic form.

   Struck: "(7) Assessment of data cost-effectiveness.--

   Struck: "(A) In general.--The Secretary shall consider and assess procedures for correlating the identity and status of recipients of compensation, benefits, or services under this subchapter with information relating to employees, retirees, and individuals described in paragraphs (3), (4), and (5).

   Struck: "(B) Report.--Not later than 1 year after the date of enactment of this section, the Secretary shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform and the Committee on Education and the Workforce of the House of Representatives a report on the cost-effectiveness of the use of the databases described in paragraphs (3), (4), and (5) for program compliance and integrity. The report required under this subparagraph may be included as part of the report required under subsection (f).

   Struck: "(8) United states postal service feca enrollee database.--Not later than 180 days after the date of enactment of this section, in order to track, verify, and communicate with the Secretary and other relevant entities, the Postmaster General shall establish an electronic database of information relating to employees of the United States Postal Service who have applied for or are receiving compensation, benefits, or services under this subchapter.

   Struck: "(e) General Protocols and Security.--

   Struck: "(1) Establishment.--

   Struck: "(A) In general.--In order to ensure strong information security and privacy standards, the Secretary, the Postmaster General, the Inspector General of the Department of Labor, and the Inspector General of the United States Postal Service shall establish protocols for the secure transfer and storage of any information provided to an individual or entity under this section.

   Struck: "(B) Considerations.--In establishing protocols under subparagraph (A), the Secretary, the Postmaster General, the Inspector General of the Department of Labor, and the Inspector General of the United States Postal Service shall consider any recommendations submitted to the Secretary by the Inspector General of the Department of Health and Human Services with respect to the secure transfer and storage of information, and to comply with privacy laws and best practices.

   Struck: "(C) Fraud case protection.--The Secretary, the Postmaster General, the Inspector General of the Department of Labor, and the Inspector General of the United States Postal Service shall establish protocols and procedures to enable information and materials relating to an active investigation of possible fraud relating to the FECA program to be appropriately kept separate from the files for employees relating to the provision of compensation, benefits, or services under the FECA program.

   Struck: "(2) Compliance.--The Secretary, the Postmaster General, the Inspector General of the Department of Labor, and the Inspector General of the United States Postal Service shall ensure that any information provided to an individual or entity under this section is provided in accordance with protocols established under paragraph (1).

   Struck: "(f) Report.--Not later than 1 year after the date of enactment of this section, and annually thereafter for 5 years, the Secretary shall submit a report on the activities of the Secretary under this section, including implementation of the Integrity and Compliance Program, to--

   Struck: "(1) the Committee on Homeland Security and Governmental Affairs of the Senate; and

   Struck: "(2) the Committee on Oversight and Government Reform and the Committee on Education and the Workforce of the House of Representatives.

   Struck: "(g) GAO Review.--The Comptroller General of the United States shall--

   Struck: "(1) conduct periodic reviews of the Integrity and Compliance Program; and

   Struck: "(2) submit reports on the results of the reviews under paragraph (1) to the Committee on Homeland Security and Governmental Affairs of the Senate and the Committee on Oversight and Government Reform and the Committee on Education and the Workforce of the House of Representatives not later than--

   Struck: "(A) 2 years after the date of enactment of this section; and

   Struck: "(B) 3 years after submission of the report under subparagraph (A).".

   Struck: (b) Technical and Conforming Amendment.--The table of sections for chapter 81 is amended by inserting after the item relating to section 8152 the following:

   Struck: "8153. Integrity and Compliance Program.".

   SEC. [struck: 313][inserted: 413]. AMOUNT OF COMPENSATION.

   (a) Injuries to Face, Head, and Neck.--Section 8107(c)(21) is amended--

   (1) by striking "not to exceed $3,500" and inserting "in proportion to the severity of the disfigurement, not to exceed $50,000,"; and

   3 unchanged paragraphsHide unchanged text

   (2) by adding at the end the following: "The maximum amount of compensation under this paragraph shall be increased on March 1 of each year by the amount determined by the Secretary of Labor to represent the percent change in the price index published for December of the preceding year over the price index published for the December of the year prior to the preceding year, adjusted to the nearest one-tenth of 1 percent.".

   (b) Funeral Expenses.--Section 8134(a) is amended--

   (1) by striking "$800" and inserting "$6,000"; and

   (2) by adding at the end the following: "The maximum amount of compensation under this subsection shall be increased on March 1 of each year by the amount determined by the Secretary of Labor to represent the percent change in the price index published for December of the preceding year over the price index published for the December of the year prior to the preceding year, adjusted to the nearest one-tenth of 1 percent.".

   (c) Application.--The amendments made by this section shall apply to injuries or deaths, respectively, occurring on or after the date of enactment of this Act.

   SEC. [struck: 314][inserted: 414]. TECHNICAL AND CONFORMING AMENDMENTS.

   Chapter 81 is amended--

   (1) in section 8101(1)(D), by inserting "for an injury that occurred before the effective date of section 204(e) of the District of Columbia Self-Government and Governmental Reorganization Act (Public Law [struck: 93-198][inserted: 93 198]; 87 Stat. 783; 5 U.S.C. 8101 note)" before the semicolon;

   (2) in section 8139, by inserting "under this subchapter" after "Compensation awarded";[inserted: and]

   (3) in section 8148(a), by striking "section 8106" and inserting "section 8106a"[struck: ;][inserted: .]

   SEC. [struck: 315][inserted: 415]. REGULATIONS.

   (a) In General.--As soon as possible after the date of enactment of this Act, the Secretary of Labor shall promulgate regulations (which may include interim final regulations) to carry out this title.

   (b) Contents.--The regulations promulgated under subsection (a) shall include, for purposes of the amendments made by sections 302 and 303, clarification of--

   (1) what is a claim; and

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

   Struck: TITLE IV--OTHER MATTERS

   Struck: SEC. 401. PROFITABILITY PLAN.

   Struck: (a) Plan Required.--Not later than 90 days after the date of enactment of this Act, the Postal Service shall submit to the Committee on Homeland Security and Governmental Affairs of the Senate, the Committee on Oversight and Government Reform of the House of Representatives, the Comptroller General of the United States, and the Commission a plan describing, in detail, the actions the Postal Service will take to--

   Struck: (1) become profitable by fiscal year 2015; and

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   Struck: (2) achieve long-term financial solvency.

   Struck: (b) Considerations.--The plan required under subsection (a) shall take into consideration--

   Struck: (1) the legal authority of the Postal Service;

   Struck: (2) the changes in the legal authority and responsibilities of the Postal Service under this Act;

   Struck: (3) any cost savings that the Postal Service anticipates will be achieved through negotiations with employees of the Postal Service; and

   Struck: (4) projected changes in mail volume.

   Struck: (c) Updates.--The Postal Service shall update the plan required under subsection (a) not less frequently than quarterly, until the last quarter of fiscal year 2015.

   Struck: SEC. 402. POSTAL RATES.

   Struck: (a) Commission Study.--

   Struck: (1) In general.--Not earlier than 2 years after the date of enactment of this Act, the Commission shall commence a study to determine--

   Struck: (A) whether and to what extent any market-dominant classes, products, or types of mail services do not bear the direct and indirect costs attributable to those classes, products, or types of mail service; and

   Struck: (B) the impact of any excess mail processing, transportation, or delivery capacity of the Postal Service on the direct and indirect costs attributable to any class, product, or type of mail service that bears less than 100 percent of the costs attributable to the class, product, or type of mail service, as determined under subparagraph (A).

   Struck: (2) Requirements.--The Commission shall conduct the study under paragraph (1) in a manner that protects confidential and proprietary business information.

   Struck: (3) Hearing.--Before completing the study under paragraph (1), the Commission shall hold a public hearing, on the record, in order to better inform the conclusions of the study. The Postal Service, postal customers, and other interested persons may participate in the hearing under this paragraph.

   Struck: (4) Completion.--Not later than 6 months after the date on which the Commission commences the study under subsection (a), the Commission shall complete the study.

   Struck: (b) Annual Updates Required.--Not later than 1 year after the date of completion of the study under subsection (a), and annually thereafter, the Commission shall--

   Struck: (1) determine whether any class of mail bears less than 100 percent of the direct and indirect costs attributable to the class, product, or type of mail service, in the same manner as under subsection (a)(1)(A);

   Struck: (2) for any class of mail for which the Commission makes a determination under paragraph (1), update the study under subsection (a); and

   Struck: (3) include the study updated under paragraph (2) in the annual written determination of the Commission under section 3653 of title 39, United States Code.

   Struck: (c) Postal Rates.--

   Struck: (1) Definition.--In this subsection, the term "loss- making", as used with respect to a class of mail, means a class of mail that bears less than 100 percent of the costs attributable to the class of mail, according to the most recent annual determination of the Commission under subsection (a)(1) or (b)(1), adjusted to account for the quantitative effect of excess mail processing, transportation, or delivery capacity of the Postal Service on the costs attributable to the class of mail.

   Struck: (2) In general.--Not later than 1 year after the date on which the study under subsection (a) is completed, and annually thereafter, the Postal Service shall establish postal rates for each loss-making class of mail.

   Struck: (3) Considerations.--The Postal Service may establish postal rates under paragraph (2) in a manner that ensures, to the extent practicable, that a class of mail described in paragraph (2) is not loss-making by--

   Struck: (A) using the authority to increase rates under section 3622(d)(1)(A) of title 39, United States Code;

   Struck: (B) exhausting any unused rate adjustment authority, as defined in section 3622(d)(2)(C) of title 39, United States Code, subject to paragraph (4); and

   Struck: (C) maximizing incentives to reduce costs and increase efficiency with regard to the processing, transportation, and delivery of such mail by the Postal Service.

   Struck: (4) Unused rate adjustment authority.--Section 3622(d)(2)(C) of title 39, United States Code, shall be applied by annually increasing by 2 percentage points any unused rate adjustment authority for a class of mail that bears less than 90 percent of the costs attributable to the class of mail, according to the most recent annual determination of the Commission under subsection (a)(1) or (b)(1), adjusted to account for the quantitative effect of excess mail processing, transportation, or delivery capacity of the Postal Service on the costs attributable to the class of mail.

   Struck: SEC. 403. COOPERATION WITH STATE AND LOCAL GOVERNMENTS; INTRA-SERVICE AGREEMENTS.

   Struck: (a) Cooperation With State and Local Governments.--Section 411 of title 39, United States Code, is amended, in the first sentence, by striking "and the Government Printing Office" inserting ", the Government Printing Office, and agencies and other units of State and local governments".

   Struck: (b) Intra-Service Agreements.--Section 411 of title 39, United States Code, as amended by subsection (a), is amended--

   Struck: (1) in the section heading, by adding at the end the following: "and within the Postal Service";

   Struck: (2) in the second sentence, by striking "section" and inserting "subsection";

   Struck: (3) by striking "Executive agencies" and inserting the following:

   Struck: "(a) Cooperation With State and Local Governments.--Executive agencies"; and

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

   Struck: "(b) Cooperation Within the Postal Service.--The Office of the Inspector General and other components of the Postal Service may enter into agreements to furnish to each other property, both real and personal, and personal and nonpersonal services. The furnishing of property and services under this subsection shall be under such terms and conditions, including reimbursability, as the Inspector General and the head of the component concerned shall deem appropriate.".

   Struck: (c) Technical and Conforming Amendment.--The table of sections for chapter 4 of title 39, United States Code, is amended by striking the item relating to section 411 and inserting the following:

   Struck: "411. Cooperation with other Government agencies and within the Postal Service.".

   Struck: SEC. 404. SHIPPING OF WINE AND BEER.

   Struck: (a) Mailability.--

   Struck: (1) Nonmailable articles.--Section 1716(f) of title 18, United States Code, is amended by striking "mails" and inserting "mails, except to the extent that the mailing is allowable under section 3001(p) of title 39".

   Struck: (2) Application of laws.--Section 1161 of title 18, United States Code, is amended, by inserting ", and, with respect to the mailing of wine or malt beverages (as those terms are defined in section 117 of the Federal Alcohol Administration Act (27 U.S.C. 211)), is in conformity with section 3001(p) of title 39" after "Register".

   Struck: (b) Regulations.--Section 3001 of title 39, United States Code, is amended by adding at the end the following:

   Struck: "(p)(1) In this subsection, the terms 'wine' and 'malt beverage' have the same meanings as in section 117 of the Federal Alcohol Administration Act (27 U.S.C. 211).

   Struck: "(2) Wine or malt beverages shall be considered mailable if mailed--

   Struck: "(A) by a licensed winery or brewery, in accordance with applicable regulations under paragraph (3); and

   Struck: "(B) in accordance with the laws of--

   Struck: "(i) the State, territory, or district of the United States where the sender or duly authorized agent initiates the mailing; and

   Struck: "(ii) the State, territory, or district of the United States where the addressee or duly authorized agent takes delivery.

   Struck: "(3) The Postal Service shall prescribe such regulations as may be necessary to carry out this subsection, including regulations providing that--

   Struck: "(A) the mailing shall be by a means established by the Postal Service to ensure direct delivery to the addressee or a duly authorized agent;

   Struck: "(B) the addressee (and any duly authorized agent) shall be an individual at least 21 years of age;

   Struck: "(C) the individual who takes delivery, whether the addressee or a duly authorized agent, shall present a valid, government-issued photo identification at the time of delivery;

   Struck: "(D) the wine or malt beverages may not be for resale or other commercial purpose; and

   Struck: "(E) the winery or brewery involved shall--

   Struck: "(i) certify in writing to the satisfaction of the Postal Service, through a registration process administered by the Postal Service, that the mailing is not in violation of any provision of this subsection or regulation prescribed under this subsection; and

   Struck: "(ii) provide any other information or affirmation that the Postal Service may require, including with respect to the prepayment of State alcohol beverage taxes.

   Struck: "(4) For purposes of this subsection--

   Struck: "(A) a winery shall be considered to be licensed if it holds an appropriate basic permit issued--

   Struck: "(i) under the Federal Alcohol Administration Act; and

   Struck: "(ii) under the law of the State in which the winery is located; and

   Struck: "(B) a brewery shall be considered to be licensed if--

   Struck: "(i) it possesses a notice of registration and bond approved by the Alcohol and Tobacco Tax and Trade Bureau of the Department of the Treasury; and

   Struck: "(ii) it is licensed to manufacture and sell malt beverages in the State in which the brewery is located.".

   Struck: (c) Effective Date.--The amendments made by this section shall take effect on the earlier of--

   Struck: (1) the date on which the Postal Service issues regulations under section 3001(p) of title 39, United States Code, as amended by this section; and

   Struck: (2) 120 days after the date of enactment of this Act.

   Struck: SEC. 405. ANNUAL REPORT ON UNITED STATES MAILING INDUSTRY.

   Struck: (a) In General.--Chapter 24 of title 39, United States Code, is amended by adding at the end the following:

   Struck: "Sec. 2403. Annual report on the fiscal stability of the United States mailing industry

   Struck: "(a) In General.--Not later than 1 year after the date of enactment of this section, and annually thereafter, the Postal Regulatory Commission shall submit a report on the fiscal stability of the United States mailing industry with respect to the preceding fiscal year to--

   Struck: "(1) the Committee on Homeland Security and Governmental Affairs of the Senate; and

   Struck: "(2) the Committee on Oversight and Government Reform of the House of Representatives.

   Struck: "(b) Assistance.--The United States Postal Service and any Federal agency involved in oversight or data collection regarding industry sectors relevant to the report under subsection (a) shall provide any assistance to the Postal Regulatory Commission that the Postal Regulatory Commission determines is necessary in the preparation of a report under subsection (a).".

   Struck: (b) Technical and Conforming Amendment.--The table of sections for chapter 24 of title 39, United States Code, is amended by adding at the end the following:

   Struck: "2403. Annual report on the fiscal stability of the United States mailing industry.".

   Struck: SEC. 406. USE OF NEGOTIATED SERVICE AGREEMENTS.

   Struck: Section 3622 of title 39, United States Code, is amended--

   Struck: (1) in subsection (c)(10)(A)--

   Struck: (A) in the matter preceding clause (i), by striking "either" and inserting "will";

   Struck: (B) in clause (i), by striking "or" at the end;

   Struck: (C) in clause (ii), by striking "and" at the end and inserting "or"; and

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

   Struck: "(iii) preserve mail volume and revenue; and"; and

   Inserted: TITLE V--POSTAL SERVICE REVENUE

   Inserted: SEC. 501. ADEQUACY, EFFICIENCY, AND FAIRNESS OF POSTAL RATES.

   Inserted: (a) In General.--Section 3622(d) is amended--

   Inserted: (1) in paragraph (1)--

   Inserted: (A) by redesignating subparagraphs (B) through (E) as subparagraph (D) through (G), respectively; and

   Inserted: (B) by inserting after subparagraph (A) the following:

   Inserted: "(B) subject to the limitation under subparagraph (A), establish postal rates to fulfill the requirement that each market-dominant class, product, and type of mail service (except for an experimental product or service) bear the direct and indirect postal costs attributable to such class, product, or type through reliably identified causal relationships plus that portion of all other costs of the Postal Service reasonably assignable to such class, product, or type;

   Inserted: "(C) establish postal rates for each group of functionally equivalent agreements between the Postal Service and users of the mail that--

   Inserted: "(i) cover attributable cost; and

   Inserted: "(ii) improve the net financial position of the Postal Service;

   Inserted: for purposes of this subparagraph, a group of functionally equivalent agreements shall consist of all service agreements that are functionally equivalent to each other within the same market-dominant product, but shall not include agreements within an experimental product;"; and

   (2) by adding at the end the following:

   Struck: "(g) Coordination.--The Postal Service and the Postal Regulatory Commission shall coordinate actions to identify methods to increase the use of negotiated service agreements for market-dominant products by the Postal Service consistent with subsection (c)(10).".

   Struck: SEC. 407. CONTRACT DISPUTES.

   Struck: Section 7101(8) of title 41, United States Code, is amended--

   Struck: (1) in subparagraph (C), by striking "and" at the end;

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   Struck: (2) in subparagraph (D), by striking the period at the end and inserting "; and"; and

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

   Struck: "(E) the United States Postal Service and the Postal Regulatory Commission.".

   Struck: SEC. 408. CONTRACTING PROVISIONS.

   Struck: (a) In General.--Part I of title 39, United States Code, is amended by adding at the end the following:

   Inserted: "(4) PRC study.--

   Inserted: "(A) In general.--Within 90 days after the end of the first fiscal year beginning after the date of enactment of the Postal Reform Act of 2012, the Postal Regulatory Commission shall complete a study to determine the quantitative impact of the Postal Service's excess capacity on the direct and indirect postal costs attributable to any class that bears less than 100 percent of its costs attributable (as described in paragraph (1)(B)), according to the most recent annual determination of the Postal Regulatory Commission under section 3653.

   Inserted: "(B) Requirements.--The study required under subparagraph (A) shall--

   Inserted: "(i) be conducted pursuant to regulations that the Postal Regulatory Commission shall prescribe within 90 days after the date of enactment of the Postal Reform Act of 2012, taking into account existing regulations for proceedings to improve the quality, accuracy, or completeness of ratemaking information under section 3652(e)(2) in effect on such date; and

   Inserted: "(ii) for any year in which any class of mail bears less than 100 percent of its costs attributable (as described in paragraph (1)(B)), be updated annually by the Postal Service and included in its annual report to the Commission under section 3652, using such methodologies as the Commission shall by regulation prescribe.

   Inserted: "(5) Additional rates.--Starting not earlier than 12 months and not later than 18 months after the date on which the first study described in paragraph (4) is completed, and at least once in each subsequent 12-month period, the Postal Service shall establish postal rates for each loss-making class of mail to eliminate such losses (other than those caused by the Postal Service's excess capacity) by exhausting all unused rate authority as well as maximizing incentives to reduce costs and increase efficiency, subject to the following:

   Inserted: "(A) The term 'loss-making', as used in this paragraph with respect to a class of mail, means a class of mail that bears less than 100 percent of its costs attributable (as described in paragraph (1)(B)), according to the most recent annual determination of the Postal Regulatory Commission under section 3653, adjusted to account for the quantitative effect of excess capacity on the costs attributable of the class (as described in paragraph (1)(C)).

   Inserted: "(B) Unused rate authority shall be annually increased by 2 percent for each class of mail that bears less than 90 percent of its costs attributable (as described in paragraph (1)(B)), according to the most recent annual determination of the Postal Regulatory Commission under section 3653, adjusted to account for the quantitative effect of excess capacity on the costs attributable of the class (as described in paragraph (1)(C)), with such increase in unused rate authority to take effect 30 days after the date that the Commission issues such determination.".

   Inserted: (b) Conforming Amendment.--Subparagraph (A) of section 3622(c)(10) is amended to read as follows:

   Inserted: "(A) improve the net financial position of the Postal Service through reducing Postal Service costs or increasing the overall contribution to the institutional costs of the Postal Service; and".

   Inserted: (c) Exception.--Section 3622(d) is amended by adding at the end the following:

   Inserted: "(4) Exception.--The requirements of paragraph (1)(B) shall not apply to a market-dominant product for which a substantial portion of the product's mail volume consists of inbound international mail with terminal dues rates determined by the Universal Postal Union (and not by bilateral agreements or other arrangements).".

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   Inserted: SEC. 502. REPEAL OF RATE PREFERENCES FOR QUALIFIED POLITICAL COMMITTEES.

   Inserted: Subsection (e) of section 3626 is repealed.

   Inserted: SEC. 503. STREAMLINED REVIEW OF QUALIFYING SERVICE AGREEMENTS FOR COMPETITIVE PRODUCTS.

   Inserted: Section 3633 is amended by adding at the end the following:

   Inserted: "(c) Streamlined Review.--Within 90 days after the date of the enactment of this subsection, after notice and opportunity for public comment, the Postal Regulatory Commission shall promulgate (and may from time to time thereafter revise) regulations for streamlined after-the-fact review of new agreements between the Postal Service and users of the mail that provide rates not of general applicability for competitive products, and are functionally equivalent to existing agreements that have collectively covered attributable costs and collectively improved the net financial position of the Postal Service. Streamlined review will be concluded within 5 working days after the agreement is filed with the Commission and shall be limited to approval or disapproval of the agreement as a whole based on the Commission's determination of its functional equivalence. Agreements not approved may be resubmitted without prejudice under section 3632(b)(3).".

   Inserted: SEC. 504. SUBMISSION OF SERVICE AGREEMENTS FOR STREAMLINED REVIEW.

   Inserted: Section 3632(b) is amended--

   Inserted: (1) by redesignating paragraph (4) as paragraph (5); and

   Inserted: (2) by inserting paragraph (3) the following:

   Inserted: "(4) Rates for streamlined review.--In the case of rates not of general applicability for competitive products that the Postmaster General considers eligible for streamlined review under section 3633(c), the Postmaster General shall cause each agreement to be filed with the Postal Regulatory Commission by such date, on or before the effective date of any new rate, as the Postmaster General considered appropriate.".

   Inserted: SEC. 505. TRANSPARENCY AND ACCOUNTABILITY FOR SERVICE AGREEMENTS.

   Inserted: Section 3653 is amended--

   Inserted: (1) by redesignating subsections (c) through (e) as subsections (d) through (f), respectively; and

   Inserted: (2) by inserting after subsection (b) the following:

   Inserted: "(c) Each annual written determination of the Commission under section 3653 shall include the following written determinations:

   Inserted: "(1) whether each product covered its costs, and if it did not, the determination shall state that such product is in noncompliance under section 3653(c); and

   Inserted: "(2) for each group of functionally equivalent agreements between the Postal Service and users of the mail, whether it fulfilled requirements to--

   Inserted: "(A) cover attributable costs; and

   Inserted: "(B) improve the net financial position of the Postal Service.

   Inserted: "(3) Any group of functionally equivalent agreements (as referred to in subparagraph (B)) not meeting subparagraphs (A) and (B) of paragraph (2) shall be determined to be in noncompliance under this subsection.

   Inserted: "(4) For purposes of this subsection, a group of functionally equivalent agreements (as referred to in paragraph (2)) shall consist of all service agreements that are functionally equivalent to each other within the same market-dominant or competitive product, but shall not include agreements within an experimental product.".

   Inserted: SEC. 506. NONPOSTAL SERVICES.

   Inserted: (a) Nonpostal Services.--

   Inserted: (1) In general.--Part IV is amended by adding after chapter 36 the following:

   Inserted: "CHAPTER 37--NONPOSTAL SERVICES

   Inserted: "Sec.

   Inserted: "3701. Purpose.

   Inserted: "3702. Definitions.

   Inserted: "3703. Postal Service advertising program.

   Inserted: "3704. Postal Service program for State governments.

   Inserted: "3705. Postal Service program for other government agencies.

   Inserted: "3706. Transparency and accountability for nonpostal services.

   Inserted: "Sec. 3701. Purpose "This chapter is intended to enable the Postal Service to increase its net revenues through specific nonpostal products and services that are expressly authorized by this chapter. Postal Service revenues and expenses under this chapter shall be funded through the Postal Service Fund.

   Inserted: "Sec. 3702. Definitions "As used in this chapter--

   Inserted: "(1) the term 'nonpostal services' is limited to services offered by the Postal Service that are expressly authorized by this chapter and are not postal products or services;

   Inserted: "(2) the term 'Postal Service advertising program' means a program, managed by the Postal Service, by which the Postal Service receives revenues from entities which advertise at Postal Service facilities and on Postal Service vehicles;

   Inserted: "(3) the term 'Postal Service program for State governments' means a program, managed by the Postal Service, by which the Postal Service receives revenue from State governments (including their agencies) for providing services on their behalf at Postal Service facilities;

   Inserted: "(4) the term 'attributable costs' means costs attributable, as defined in section 3631; and

   Inserted: "(5) the term 'year' means a fiscal year.

   Inserted: "Sec. 3703. Postal Service advertising program "Notwithstanding any other provision of this title, the Postal Service may establish and manage a program that allows entities to advertise at Postal Service facilities and on Postal Service vehicles. Such a program shall be subject to the following requirements:

   Inserted: "(1) The Postal Service shall at all times ensure advertising it permits is consistent with the integrity of the Postal Service.

   Inserted: "(2) Any advertising program is required to cover a minimum of 200 percent of its attributable costs in each year.

   Inserted: "(3) All advertising expenditures and revenues are subject to annual compliance determination (including remedies for noncompliance) applicable to nonpostal products.

   Inserted: "(4) Total advertising expenditures and revenues must be disclosed in Postal Service annual reports.

   Inserted: "Sec. 3704. Postal Service program for State governments

   Inserted: "(a) In General.--Notwithstanding any other provision of this title, the Postal Service may establish a program to provide services for agencies of State governments within the United States, but only if such services--

   Inserted: "(1) shall provide enhanced value to the public, such as by lowering the cost or raising the quality of such services or by making such services more accessible;

   Inserted: "(2) do not interfere with or detract from the value of postal services, including--

   Inserted: "(A) the cost and efficiency of postal services; and

   Inserted: "(B) access to postal retail service, such as customer waiting time and access to parking; and

   Inserted: "(3) provide a reasonable contribution to the institutional costs of the Postal Service, defined as reimbursement for each service and to each agency covering at least 150 percent of the attributable costs of such service in each year.

   Inserted: "(b) Public Notice.--At least 90 days before offering any services under this section, the Postal Service shall make each agreement with State agencies readily available to the public on its website, including a business plan that describes the specific services to be provided, the enhanced value to the public, terms of reimbursement, the estimated annual reimbursement to the Postal Service, and the estimated percentage of attributable Postal Service costs that will be covered by reimbursement (with documentation to support these estimates). The Postal Service shall solicit public comment for at least 30 days, with comments posted on its website, followed by its written response posted on its website at least 30 days before offering such services.

   Inserted: "(c) Approval Required.--The Governors of the Postal Service shall approve the provision of services under this section by a recorded vote, with at least \2/3\ of its membership voting for approval, with the vote publicly disclosed on the Postal Service website.

   Inserted: "(d) Classification of Services.--All services for a given agency provided under this section shall be classified as a separate activity subject to the requirements of annual reporting under section 3706. Such reporting shall also include information on the quality of service and related information to demonstrate that it satisfied the requirements of subsection (a). Information provided under this section shall be according to requirements that the Postal Regulatory Commission shall by regulation prescribe.

   Inserted: "(e) Definitions.--For the purpose of this section--

   Inserted: "(1) the term 'State' includes the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and any other territory or possession of the United States; and

   Inserted: "(2) the term 'United States', when used in a geographical sense, means the States.

   Inserted: "Sec. 3705. Postal Service program for other government agencies

   Inserted: "(a) In General.--The Postal Service may establish a program to provide property and services for other government agencies within the meaning of section 411, but only if such program provides a reasonable contribution to the institutional costs of the Postal Service, defined as reimbursement by each agency that covers at least 100 percent of the attributable costs of all property and service provided by the Postal Service in a each year to such agency.

   Inserted: "(b) Classification of Services.--For each agency, all property and services provided by the Postal Service under this section shall be classified as a separate activity subject to the requirements of annual reporting under section 3706. Information provided under this section shall be according to requirements that the Postal Regulatory Commission shall by regulation prescribe.

   Inserted: "Sec. 3706. Transparency and accountability for nonpostal services

   Inserted: "(a) Annual Reports to the Commission.--

   Inserted: "(1) In general.--The Postal Service shall, no later than 90 days after the end of each year, prepare and submit to the Postal Regulatory Commission a report (together with such nonpublic annex to the report as the Commission may require under subsection (b)) which shall analyze costs, revenues, rates, and quality of service for this chapter, using such methodologies as the Commission shall by regulation prescribe, and in sufficient detail to demonstrate compliance with all applicable requirements of this chapter.

   Inserted: "(2) Audits.--The Inspector General shall regularly audit the data collection systems and procedures utilized in collecting information and preparing such report. The results of any such audit shall be submitted to the Postal Service and the Postal Regulatory Commission.

   Inserted: "(b) Supporting Matter.--The Postal Regulatory Commission shall have access, in accordance with such regulations as the Commission shall prescribe, to the working papers and any other supporting matter of the Postal Service and the Inspector General in connection with any information submitted under this section.

   Inserted: "(c) Content and Form of Reports.--

   Inserted: "(1) In general.--The Postal Regulatory Commission shall, by regulation, prescribe the content and form of the public reports (and any nonpublic annex and supporting matter relating to the report) to be provided by the Postal Service under this section. Such reports shall be included with the annual compliance determination reported under section 3653. In carrying out this subsection, the Commission shall give due consideration to--

   Inserted: "(A) providing the public with timely, adequate information to assess compliance;

   Inserted: "(B) avoiding unnecessary or unwarranted administrative effort and expense on the part of the Postal Service; and

   Inserted: "(C) protecting the confidentiality of information that is commercially sensitive or is exempt from public disclosure under section 552(b) of title 5.

   Inserted: "(2) Revised requirements.--The Commission may, on its own motion or on request of any interested party, initiate proceedings (to be conducted in accordance with regulations that the Commission shall prescribe) to improve the quality, accuracy, or completeness of Postal Service data required by the Commission under this subsection whenever it shall appear that--

   Inserted: "(A) the attribution of costs or revenues to property or services under this chapter has become significantly inaccurate or can be significantly improved;

   Inserted: "(B) the quality of service data provided to the Commission for annual reports under this chapter has become significantly inaccurate or can be significantly improved; or

   Inserted: "(C) such revisions are, in the judgment of the Commission, otherwise necessitated by the public interest.

   Inserted: "(d) Confidential Information.--

   Inserted: "(1) In general.--If the Postal Service determines that any document or portion of a document, or other matter, which it provides to the Postal Regulatory Commission in a nonpublic annex under this section contains information which is described in section 410(c) of this title, or exempt from public disclosure under section 552(b) of title 5, the Postal Service shall, at the time of providing such matter to the Commission, notify the Commission of its determination, in writing, and describe with particularity the documents (or portions of documents) or other matter for which confidentiality is sought and the reasons therefor.

   Inserted: "(2) Treatment.--Any information or other matter described in paragraph (1) to which the Commission gains access under this section shall be subject to paragraphs (2) and (3) of section 504(g) in the same way as if the Commission had received notification with respect to such matter under section 504(g)(1).

   Inserted: "(e) Annual Compliance Determination.--

   Inserted: "(1) Opportunity for public comment.--After receiving the reports required under subsection (a) for any year, the Postal Regulatory Commission shall promptly provide an opportunity for comment on such reports by any interested party, and an officer of the Commission who shall be required to represent the interests of the general public.

   Inserted: "(2) Determination of compliance or noncompliance.--Not later than 90 days after receiving the submissions required under subsection (a) with respect to a year, the Postal Regulatory Commission shall make a written determination as to whether any nonpostal activities during such year were or were not in compliance with applicable provisions of this chapter (or regulations promulgated under this chapter). The Postal Regulatory Commission shall issue a determination of noncompliance if the requirements for coverage of attributable costs are not met. If, with respect to a year, no instance of noncompliance is found to have occurred in such year, the written determination shall be to that effect.

   Inserted: "(3) Noncompliance.--If, for a year, a timely written determination of noncompliance is made under this chapter, the Postal Regulatory Commission shall take appropriate action. If the requirements for coverage of attributable costs specified by this chapter are not met, the Commission shall, within 60 days after the determination, prescribe remedial action to restore compliance as soon as practicable, which shall also include the full restoration of revenue shortfalls during the following fiscal year. The Commission may order the Postal Service to discontinue a nonpostal service under section 3703 or 3704 that persistently fails to meet cost coverage requirements.

   Inserted: "(4) Any deliberate noncompliance.--In addition, in cases of deliberate noncompliance by the Postal Service with the requirements of this chapter, the Postal Regulatory Commission may order, based on the nature, circumstances, extent, and seriousness of the noncompliance, a fine (in the amount specified by the Commission in its order) for each incidence of noncompliance. All receipts from fines imposed under this subsection shall be deposited in the general fund of the Treasury of the United States.".

   Inserted: (2) Clerical amendment.--The table of chapters at the beginning of part IV is amended by adding after the item relating to chapter 36 the following:

   Inserted: "37. Nonpostal services....................................3701".....

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 404(e).--Section 404(e) is amended by adding at the end the following:

   Inserted: "(6) Nothing in this section shall be considered to prevent the Postal Service from establishing nonpostal products and services that are expressly authorized by chapter 37.".

   Inserted: (2) Section 411.--The last sentence of section 411 is amended by striking "including reimbursability" and inserting "including reimbursability within the limitations of chapter 37".

   Inserted: (3) Treatment of existing nonpostal services.--All nonpostal services continued pursuant to section 404(e) of title 39, United States Code, shall be considered to be expressly authorized by chapter 37 of such title (as added by subsection (a)(1)) and shall be subject to the requirements of such chapter.

   Inserted: SEC. 507. REIMBURSEMENT OF ALASKA BYPASS MAIL COSTS.

   Inserted: (a) Cost Estimates by Postal Regulatory Commission.--Section 3651(b) is amended--

   Inserted: (1) by redesignating paragraph (2) as paragraph (3); and

   Inserted: (2) by inserting after paragraph (1) the following:

   Inserted: "(2) Alaska bypass mail costs.--In addition to the information required under subsection (a), each report under this section shall also include, with respect to the period covered by such report, an estimate of the costs incurred by the Postal Service in providing Alaska bypass mail service under section 5402 of this title.".

   Inserted: (b) Reimbursements.--

   Inserted: (1) In general.--Chapter 54 is amended by adding at the end the following:

   Inserted: "Sec. 5404. Reimbursement of Alaska bypass mail costs

   Inserted: "(a) In General.--The State of Alaska, on an annual basis, shall make a payment to the Postal Service to reimburse the Postal Service for its costs in providing Alaska bypass mail service under section 5402 of this title.

   Inserted: "(b) Date of First Payment.--The State of Alaska shall make its first payment under subsection (a) on or before the last day of the first fiscal year of the State of Alaska beginning after the date of enactment of this section.

   Inserted: "(c) Payment Amounts.--

   Inserted: "(1) Determination of amounts.--The amount of a payment under subsection (a) shall be determined based on the most recent cost estimate prepared by the Postal Regulatory Commission under section 3651(b)(2) of this title (in this subsection referred to as the 'cost estimate').

   Inserted: "(2) First payment.--The first payment under subsection (a) shall be in an amount equal to 20 percent of the cost estimate.

   Inserted: "(3) Subsequent payments.--Each subsequent payment under subsection (a) shall be in an amount equal to a percentage of the cost estimate determined by adding 20 percent to the percentage due in the prior year, except that no payment shall exceed 100 percent of the cost estimate.

   Inserted: "(d) Notice of Payment Amounts.--Not later than 30 days after the date of issuance of a cost estimate by the Postal Regulatory Commission under section 3651(b)(2) of this title, the Postal Service shall furnish the State of Alaska with written notice of the amount of the next payment due under subsection (a).

   Inserted: "(e) Deposit of Payments.--Not later than the last day of the fiscal year of the State of Alaska in which notice of a payment is provided under subsection (d)--

   Inserted: "(1) the State of Alaska shall transmit the payment to the Postal Service; and

   Inserted: "(2) the Postal Service shall deposit the payment in the Postal Service Fund.".

   Inserted: (2) Clerical amendment.--The table of sections at the beginning of chapter 54 is amended by adding at the end the following:

   Inserted: "5404. Reimbursement of Alaska bypass mail costs.".

   Inserted: SEC. 508. APPROPRIATIONS MODERNIZATION.

   Inserted: (a) In General.--Section 2401 is amended by striking subsections (b) through (d).

   Inserted: (b) Effective Date.--The amendment made by subsection (a) shall be effective with respect to fiscal years beginning after the date of enactment of this Act.

   Inserted: SEC. 509. RETIREE HEALTH CARE BENEFIT PAYMENT DEFERRAL.

   Inserted: Section 8909a of title 5, United States Code, is amended--

   Inserted: (1) in the section heading, by striking "Benefit" and inserting "Benefits";

   Inserted: (2) in subsection (d)(3)(A)(v), by striking "$5,500,000,000" and inserting "$1,000,000,000";

   Inserted: (3) in subsection (d)(3)(A)(ix), by striking "$5,700,000,000" and inserting "$7,950,000,000"; and

   Inserted: (4) in subsection (d)(3)(A)(x), by striking "$5,800,000,000" and inserting "$8,050,000,000".

   Inserted: TITLE VI--POSTAL CONTRACTING REFORM

   Inserted: SEC. 601. CONTRACTING PROVISIONS.

   Inserted: (a) In General.--Part I is amended by adding at the end the following:

   "CHAPTER 7--CONTRACTING PROVISIONS

   Struck: "Sec. "701. Definitions. "702. Advocate for competition. "703. Delegation of contracting authority. "704. Posting of noncompetitive purchase requests for noncompetitive contracts. "705. Review of ethical issues. "706. Ethical restrictions on participation in certain contracting activity. "707. Congressional oversight authority.

   Inserted: "Sec.

   Inserted: "701. Definitions.

   Inserted: "702. Advocate for competition.

   Inserted: "703. Delegation of contracting authority.

   Inserted: "704. Posting of noncompetitive purchase requests for noncompetitive contracts.

   Inserted: "705. Review of ethical issues.

   Inserted: "706. Ethical restrictions on participation in certain contracting activity.

   "Sec. 701. Definitions "In this chapter--

   "(1) the term 'contracting officer' means an employee of a covered postal entity who has authority to enter into a postal contract;

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   "(2) the term 'covered postal entity' means--

   "(A) the Postal Service; or

   "(B) the Postal Regulatory Commission;

   "(3) the term 'head of a covered postal entity' means--

   "(A) in the case of the Postal Service, the Postmaster General; or

   "(B) in the case of the Postal Regulatory Commission, the Chairman of the Postal Regulatory Commission;

   Inserted: "(4) the term 'postal contract' means--

   "([struck: 4][inserted: A]) [inserted: in ]the [struck: term 'postal contract' means ][inserted: case of the Postal Service, ]any contract (including any agreement or memorandum of understanding) entered into by [struck: a covered postal entity ][inserted: the Postal Service ]for the procurement of goods or services; [struck: and][inserted: or]

   Inserted: "(B) in the case of the Postal Regulatory Commission, any contract (including any agreement or memorandum of understanding) in an amount exceeding the simplified acquisition threshold (as defined in section 134 of title 41 and adjusted under section 1908 of such title) entered into by the Postal Regulatory Commission for the procurement of goods or services.

   "(5) the term 'senior procurement executive' means the senior procurement executive of a covered postal entity.

   "Sec. 702. Advocate for competition

   "(a) Establishment and Designation.--

   "(1) [struck: Establishment.--]There is established in each covered postal entity an advocate for competition.

   "(2) [struck: Designation.--]The head of each covered postal entity shall designate for the covered postal entity 1 or more officers or employees (other than the senior procurement executive) to serve as the advocate for competition.

   "(b) Responsibilities.--The advocate for competition of [struck: each][inserted: a] covered postal entity shall--

   Struck: "(1) be responsible for promoting competition to the maximum extent practicable consistent with obtaining best value by promoting the acquisition of commercial items and challenging barriers to competition;

   Inserted: "(1) be responsible for promoting--

   Inserted: "(A) the contracting out of functions of the covered postal entity that the private sector can perform equally well or better, and at lower cost; and

   Inserted: "(B) competition to the maximum extent practicable consistent with obtaining best value by promoting the acquisition of commercial items and challenging barriers to competition;

   "(2) review the procurement activities of the covered postal entity; and

   Struck: "(3) prepare and transmit to the head of each covered postal entity, the senior procurement executive of each covered postal entity, the Board of Governors, and Congress, an annual report describing--

   Struck: "(A) the activities of the advocate under this section;

   Struck: "(B) initiatives required to promote competition;

   Struck: "(C) barriers to competition that remain; and

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   Struck: "(D) the number of waivers made by each covered postal entity under section 704(c).

   Inserted: "(3) prepare and transmit the annual report required under subsection (c).

   Inserted: "(c) Annual Report.--

   Inserted: "(1) Preparation.--The advocate for competition of a covered postal entity shall prepare an annual report describing the following:

   Inserted: "(A) The activities of the advocate under this section.

   Inserted: "(B) Initiatives required to promote contracting out and competition.

   Inserted: "(C) Barriers to contracting out and competition.

   Inserted: "(D) In the case of the report prepared by the competition advocate of the Postal Service, the number of waivers made by the Postal Service under section 704(c).

   Inserted: "(2) Transmission.--The report under this subsection shall be transmitted--

   Inserted: "(A) to Congress;

   Inserted: "(B) to the head of the postal entity;

   Inserted: "(C) to the senior procurement executive of the entity;

   Inserted: "(D) in the case of the competition advocate of the Postal Service, to each member of the Postal Service Board of Governors; and

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   Inserted: "(E) in the case of the competition advocate of the Postal Regulatory Commission, to each of the Commissioners of the Commission.

   "Sec. 703. Delegation of contracting authority

   "(a) In General.--

   "(1) Policy.--Not later than 60 days after the date of enactment of [struck: the 21st Century Postal Service Act of 2012][inserted: this chapter], the head of each covered postal entity shall issue a policy on contracting officer delegations of authority for [inserted: postal contracts for ]the covered postal entity.

   "(2) Contents.--The policy issued under paragraph (1) shall require that--

   "(A) notwithstanding any delegation of authority with respect to postal contracts, the ultimate responsibility and accountability for the award and administration of postal contracts resides with the senior procurement executive; and

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   "(B) a contracting officer shall maintain an awareness of and engagement in the activities being performed on postal contracts of which that officer has cognizance, notwithstanding any delegation of authority that may have been executed.

   "(b) Posting of Delegations.--

   "(1) In general.--The head of each covered postal entity shall make any delegation of authority for postal contracts outside the functional contracting unit readily available and accessible on the website of the covered postal entity.

   "(2) Effective date.--This paragraph shall apply to any delegation of authority made on or after 30 days after the date of enactment of [struck: the 21st Century Postal Service Act of 2012][inserted: this chapter].

   "Sec. 704. Posting of noncompetitive purchase requests for noncompetitive contracts

   "(a) Posting Required.--

   "(1) Postal regulatory commission.--The Postal Regulatory Commission shall make the noncompetitive purchase request for any noncompetitive award[struck: , ][inserted: for any contract (including any agreement or memorandum of understanding) entered into by the Postal Regulatory Commission for the procurement of goods and services, in an amount of $20,000 or more, ]including the rationale supporting the noncompetitive award, publicly available on the website of the Postal Regulatory Commission--

   "(A) not later than 14 days after the date of the award of the noncompetitive contract; or

   "(B) not later than 30 days after the date of the award of the noncompetitive contract, if the basis for the award was a compelling business interest.

   "(2) Postal service.--The Postal Service shall make the noncompetitive purchase request for any noncompetitive award of a postal contract [struck: valued at ][inserted: in an amount of ]$250,000 or more, including the rationale supporting the noncompetitive award, publicly available on the website of the Postal Service--

   "(A) not later than 14 days after the date of the award; or

   "(B) not later than 30 days after the date of the award, if the basis for the award was a compelling business interest.

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   "(3) Adjustments to the posting threshold for the postal service.--

   "(A) Review and determination.--Not later than January 31 of each year, the Postal Service shall--

   "(i) review the $250,000 threshold established under paragraph (2); and

   "(ii) based on any change in the Consumer Price Index for all-urban consumers of the Department of Labor, determine whether an adjustment to the threshold shall be made.

   "(B) Amount of adjustments.--An adjustment under subparagraph (A) shall be made in increments of $5,000. If the Postal Service determines that a change in the Consumer Price Index for a year would require an adjustment in an amount that is less than $5,000, the Postal Service may not make an adjustment to the threshold for the year.

   "(4) Effective date.--This subsection shall apply to any noncompetitive contract awarded on or after the date that is 90 days after the date of enactment of [struck: the 21st Century Postal Service Act of 2012][inserted: this chapter].

   "(b) Public Availability.--

   "(1) In general.--Subject to paragraph (2), the information required to be made publicly available by a covered postal entity under subsection (a) shall be readily accessible on the website of the covered postal entity.

   "(2) Protection of proprietary information.--A covered postal entity shall--

   "(A) carefully screen any description of the rationale supporting a noncompetitive award required to be made publicly available under subsection (a) to determine whether the description includes proprietary data (including any reference or citation to the proprietary data) or security-related information; and

   "(B) remove any proprietary data or [struck: security- related ][inserted: security-related ]information before making publicly available a description of the [struck: rational][inserted: rationale] supporting a noncompetitive award.

   "(c) Waivers.--

   "(1) Waiver permitted.--If [struck: a covered postal entity ][inserted: the Postal Service ]determines that making a noncompetitive purchase request [inserted: for a postal contract of the Postal Service ]publicly available would risk placing the Postal Service at a competitive disadvantage relative to a private sector competitor, the senior procurement executive, in consultation with the advocate for competition of the [struck: covered postal entity][inserted: Postal Service], may waive the requirements under subsection (a).

   "(2) Form and content of waiver.--

   "(A) Form.--A waiver under paragraph (1) shall be in the form of a written determination placed in the file of the contract to which the noncompetitive purchase agreement relates.

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   "(B) Content.--A waiver under paragraph (1) shall include--

   "(i) a description of the risk associated with making the noncompetitive purchase request publicly available; and

   "(ii) a statement that redaction of sensitive information in the noncompetitive purchase request would not be sufficient to protect the Postal Service from being placed at a competitive disadvantage relative to a private sector competitor.

   "(3) Delegation of waiver authority.--[struck: A covered postal entity ][inserted: The Postal Service ]may not delegate the authority to approve a waiver under paragraph (1) to any employee having less authority than the senior procurement executive.

   "Sec. 705. Review of ethical issues "If a contracting officer identifies any ethical issues relating to a proposed contract and submits those issues and that proposed contract to the designated ethics official for the covered postal entity before the awarding of that contract, that ethics official shall--

   "(1) review the proposed contract; and

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   "(2) advise the contracting officer on the appropriate resolution of ethical issues.

   "Sec. 706. Ethical restrictions on participation in certain contracting activity

   "(a) Definitions.--In this section--

   "(1) the term 'covered employee' means--

   "(A) a contracting officer; or

   "(B) any employee of a covered postal entity whose [struck: decisionmaking ][inserted: decision making ]affects a postal contract as determined by regulations prescribed by the head of a covered postal entity;

   Struck: "(2) the term 'covered relationship' means a covered relationship described in section 2635.502(b)(1) of title 5, Code of Federal Regulations, or any successor thereto; and

   "([struck: 3][inserted: 2]) the term 'final conviction' means a conviction, whether entered on a verdict or plea, including a plea of nolo contendere, for which a sentence has been imposed[struck: .][inserted: ; and]

   Inserted: "(3) the term 'covered relationship' means a covered relationship described in section 2635.502(b)(1) of title 5, Code of Federal Regulations, or any successor thereto.

   "(b) In General.--

   "(1) Regulations.--The head of each covered postal entity shall prescribe regulations that--

   "(A) require a covered employee to include in the file of any noncompetitive purchase request for a noncompetitive postal contract a written certification that--

   "(i) discloses any covered relationship of the covered employee; and

   "(ii) [inserted: states that ]the covered employee will not take any action with respect to the noncompetitive purchase request that affects the financial interests of a friend, relative, or person with whom the covered employee is affiliated in a nongovernmental capacity, or otherwise gives rise to an appearance of the use of public office for private gain, as described in section 2635.702 of title 5, Code of Federal Regulations, or any successor thereto;

   "(B) require a contracting officer to consult with the ethics counsel for the covered postal entity regarding any disclosure made by a covered employee under subparagraph (A)(i), to determine whether participation by the covered employee in the noncompetitive purchase request would give rise to a violation of part 2635 of title 5, Code of Federal Regulations (commonly referred to as the [struck: ']Standards of Ethical Conduct for Employees of the Executive Branch[struck: '])[inserted: , or any successor thereto];

   "(C) require the ethics counsel for a covered postal entity to review any disclosure made by a contracting officer under subparagraph (A)(i) to determine whether participation by the contracting officer in the noncompetitive purchase request would give rise to a violation of part 2635 of title 5, Code of Federal Regulations (commonly referred to as the [struck: ']Standards of Ethical Conduct for Employees of the Executive Branch[struck: ']), or any successor thereto;

   "(D) under subsections (d) and (e) of section [struck: 2635.50][inserted: 2635.502] of title 5, Code of Federal Regulations, or any successor thereto, require the ethics counsel for a covered postal entity to--

   "(i) authorize a covered employee that makes a disclosure under subparagraph (A)(i) to participate in the noncompetitive postal contract; or

   "(ii) disqualify a covered employee that makes a disclosure under subparagraph (A)(i) from participating in the noncompetitive postal contract;

   "(E) require a contractor to timely disclose to the contracting officer in a bid, solicitation, award, or performance of a postal contract any conflict of interest with a covered employee; and

   "(F) include authority for the head of the covered postal entity to [struck: a ]grant a waiver or otherwise mitigate any organizational or personal conflict of interest, if the head of the covered postal entity determines that the waiver or mitigation is in the best interests of the [struck: Postal Service][inserted: covered postal entity].

   "(2) Posting of waivers.--Not later than 30 days after the head of a covered postal entity grants a waiver described in paragraph (1)(F), the head of the covered postal entity shall make the waiver publicly available on the website of the covered postal entity.

   "(c) Contract Voidance and Recovery.--

   2 unchanged paragraphsHide unchanged text

   "(1) Unlawful conduct.--In any case in which there is a final conviction for a violation of any provision of chapter 11 of title 18 relating to a postal contract, the head of a covered postal entity may--

   "(A) void that contract; and

   "(B) recover the amounts expended and property transferred by the covered postal entity under that contract.

   "(2) Obtaining or disclosing procurement information.--

   "(A) In general.--In any case [struck: where ][inserted: in which ]a contractor under a postal contract fails to timely disclose a conflict of interest to the appropriate contracting officer as required under the regulations promulgated under subsection (b)(1)([struck: D][inserted: E]), the head of a covered postal entity may--

   "(i) void that contract; and

   "(ii) recover the amounts expended and property transferred by the covered postal entity under that contract.

   "(B) Conviction or administrative determination.--[struck: ]A case described under subparagraph (A) is any case in which--

   "(i) there is a final conviction for an offense punishable under section [struck: 27(e)][inserted: 2105] of [struck: the Office of Federal Procurement Policy Act (][inserted: title ]41[struck: U.S.C. 423(e))]; or

   "(ii) the head of a covered postal entity determines, based upon a preponderance of the evidence, that the contractor or someone acting for the contractor has engaged in conduct constituting an offense punishable under section [struck: 27(e)][inserted: 2105] of [struck: that Act][inserted: such title].[inserted: ".]

   Struck: "Sec. 707. Congressional oversight authority "The Postal Service may not enter into any contract that restricts the ability of Congress to exercise oversight authority.".

   (b) [struck: Technical and Conforming ][inserted: Clerical ]Amendment.--The table of chapters [struck: for part I][inserted: at the beginning] of [struck: title 39, United States Code, ][inserted: part I ]is amended by adding at the end the following:

   "7. Contracting Provisions.................................[struck: ][inserted: .]701".[inserted: ....]

   Inserted: SEC. 602. TECHNICAL AMENDMENT TO DEFINITION.

   Inserted: Section 7101(8) of title 41, United States Code, is amended--

   Inserted: (1) by striking "and" at the end of subparagraph (C);

   Inserted: (2) by striking the period at the end of subparagraph (D) and inserting "; and"; and

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

   Inserted: "(E) the United States Postal Service and the Postal Regulatory Commission.".

   Original wording

   Strike all after the enacting clause and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed