Sets forth provisions governing voluntary separation incentive payments.
Revises: (1) eligibility criteria for voluntary early retirement; (2) Federal employee recruitment, relocation, and retention bonus provisions (increasing the amount which may be paid for critical need employees); (3) criteria for providing employees academic degree training; (4) provisions governing special pay authority; and (5) annuity computation for part-time service.
Permits all Federal employees to keep their frequent travel program benefits resulting from U.S. paid travel.
Makes certain student volunteers eligible under agency programs to encourage commuting by means other than single-occupancy motor vehicles.
Establishes a separate annual pay cap applicable to certain senior-level and senior executive positions.
Repeals the senior executive recertification requirement. Authorizes an annual leave credit for certain senior level and senior executive employees.
Revises provisions concerning personnel management demonstration projects, permitting their modification and/or conversion to an alternative personnel system. Authorizes agencies to implement and modify an alternative personnel system and to appoint certain critical employees outside the competitive service. Authorizes the use of a quality category rather than a numerical ratings selection system.
Revises the requirements for agency contributions to Federal pension systems and funds paying post-retirement health benefits to require accrual funding, including an annual determination of the unfunded liability of such funds and the establishment of amortization and payment schedules to liquify such liability.
Amends the Federal Property and Administrative Services Act of 1949 to require the Administrator of General Services to establish, maintain, and apply current asset management principles to real and personal property and compile a single descriptive listing of all Federal real property interests. Authorizes landholding agencies to apply enhanced asset management tools, such as interagency transfers or exchanges, sales or exchanges with non-Federal sources, and subleases or outleases to other agencies or non-Federal entities, for real property.
Revises provisions pertaining to the disposal of surplus property. Permits agencies to retain proceeds from the transfer or disposition of real or personal property as specified. Revises provisions concerning the disposal of surplus property, permitting conveyance to non-profits and for public airport use. Authorizes the abandonment of property when the cost of care and handling would exceed its fair market value. Amends the McKinney-Vento Homeless Assistance Act to revise procedures for consideration of surplus real property for homeless assistance.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1612 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1612
To provide Federal managers with tools and flexibility in areas such as
personnel, budgeting, property management and disposal, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 1, 2001
Mr. Thompson introduced the following bill; which was read twice and
referred to the Committee on Governmental Affairs
_______________________________________________________________________
A BILL
To provide Federal managers with tools and flexibility in areas such as
personnel, budgeting, property management and disposal, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Managerial
Flexibility Act of 2001''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; Table of Contents.
TITLE I--FEDERAL EMPLOYEE MANAGEMENT REFORMS
Subtitle A--Federal Employment Restructuring Assistance
Sec. 101. Voluntary separation incentives.
Sec. 102. Existing authorities valid until expiration.
Sec. 103. Effective date.
Subtitle B--Federal Employee Voluntary Early Retirement Amendments
Sec. 111. Voluntary early retirement authority.
Subtitle C--Civil Service Recruitment and Retention Incentives
Sec. 121. Recruitment, relocation, and retention bonuses.
Sec. 122. Academic degree training.
Sec. 123. Professional credentials.
Sec. 124. Correction of pay administration problems.
Sec. 125. Civil Service Retirement System computations for part-time
service.
Sec. 126. Promotional items received pursuant to official travel.
Sec. 127. Student volunteer transit subsidy.
Sec. 128. Effective date.
Subtitle D--Promotion of Results-Oriented Performance Evaluation and
Compensation for Senior Executives
Sec. 131. Cap on total annual compensation.
Sec. 132. Repeal of senior executive recertification.
Sec. 133. Annual leave enhancements.
Sec. 134. Effective date.
Subtitle E--Federal Human Resources Management Innovations
Sec. 141. Project management and alternative personnel systems.
Sec. 142. Effective date.
Subtitle F--Federal Human Resources Hiring Flexibility
Sec. 151. Employment flexibility amendments.
TITLE II--BUDGETING AND MANAGING FOR RESULTS: FULL FUNDING FOR FEDERAL
RETIREE COSTS
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees
Sec. 201. Civil Service Retirement System.
Sec. 202. Central Intelligence Agency Retirement and Disability System.
Sec. 203. Foreign Service Retirement and Disability System.
Sec. 204. Public Health Service Commissioned Corps Retirement System.
Sec. 205. National Oceanic and Atmospheric Administration Commissioned
Officer Corps Retirement System.
Sec. 206. Coast Guard Military Retirement System.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
Sec. 211. Federal Employees Health Benefits Fund.
Sec. 212. Uniformed Services Health Benefits for Retirees.
Sec. 213. Effective date.
TITLE III--FEDERAL PROPERTY ASSET MANAGEMENT REFORMS
Sec. 301. Definitions.
Subtitle A--Life Cycle Planning and Management
Subtitle B--Enhanced Authorities for Real Property Asset Management
Sec. 311. Enhanced asset management tools.
Sec. 312. Repeal of section 321 of the Federal Property and
Administration Services Act.
Sec. 313 Disposal of surplus property.
Subtitle C--Incentives for Real and Personal Property Management
Improvement
Sec. 321. Proceeds from transfer or disposition of property.
Sec. 322. Relationship to other agencies' authorities to use disposal
proceeds.
Sec. 323. Impact on other authorities to use disposal proceeds.
Sec. 324. Using a share of sale proceeds to maintain historic Treasury
receipts.
Subtitle D--Streamlined and Enhanced Disposal Authorities
Sec. 331. Including nonprofit organizations as eligible donees.
Sec. 332. Elimination of certain negotiated sale requirements.
Sec. 333. Exchange and sale of personal property.
Sec. 334. Expansion of abandonment authority.
Sec. 335. Clarifying certain donation authorities.
Sec. 336. Streamlining consideration of surplus real property for
homeless assistance.
Subtitle E--Miscellaneous
Sec. 341. Scope and construction.
Sec. 342. Severability.
Sec. 343. No waiver.
Sec. 344. Agency discretion.
Sec. 345. Effective date.
Sec. 346. Report of the Comptroller General.
TITLE I--FEDERAL EMPLOYEE MANAGEMENT REFORMS
Subtitle A--Federal Employment Restructuring Assistance
SEC. 101. VOLUNTARY SEPARATION INCENTIVES.
(a) Chapter 35 of title 5, United States Code, is amended--
(1) by amending the chapter title to read as follows:
``CHAPTER 35--RETENTION PREFERENCE, VOLUNTARY SEPARATION INCENTIVE
PAYMENTS, RESTORATION, AND REEMPLOYMENT'';
(2) by inserting after subchapter I a new subchapter II to
read as follows:
``SUBCHAPTER II--VOLUNTARY SEPARATION INCENTIVE PAYMENTS
``Sec. 3521. Definitions
``For the purpose of this subchapter--
``(1) `agency' means an Executive agency as defined by
section 105; and
``(2) `employee' means an employee as defined by section
2105 employed by an agency and an individual employed by a
county committee established under section 8(b)(5) of the Soil
Conservation and Domestic Allotment Act (16 U.S.C. 590h(b)(5))
who--
``(A) is serving under an appointment without time
limitation; and
``(B) has been currently employed for a continuous
period of at least 3 years;
but does not include--
``(i) a reemployed annuitant under
subchapter III of chapter 83 or chapter 84 or
another retirement system for employees of the
Government;
``(ii) an employee having a disability on
the basis of which such employee is or would be
eligible for disability retirement under
subchapter III of chapter 83 or chapter 84 or
another retirement system for employees of the
Government;
``(iii) an employee who is in receipt of a
decision notice of involuntary separation for
misconduct or unacceptable performance;
``(iv) an employee who has previously
received any voluntary separation incentive
payment from the Federal Government under this
subchapter or any other authority;
``(v) an employee covered by statutory
reemployment rights who is on transfer
employment with another organization; or
``(vi) any employee who, during the 24-
month period preceding the employee's date of
separation, received and did not repay a
recruitment or relocation bonus under section
5753 or who, within the 12-month period
preceding the employee's date of separation,
received and did not repay a retention
allowance under section 5754, or who, within
the 36-month period preceding the employee's
date of separation, received and did not repay
funds provided for student loan repayment under
section 5379, unless the paying agency has
waived its right of recovery of those funds.
``Sec. 3522. Agency plans; approval
``(a) The head of each agency, prior to obligating any resources
for voluntary separation incentive payments, shall submit to the
Director of the Office of Management and Budget a plan outlining the
intended use of such incentive payments that provides such information
as the Director may require, including the information specified in
subsection (b).
``(b) The agency's plan under subsection (a) shall include--
``(1) the positions and functions to be reduced or
eliminated;
``(2) a description of which categories of employees will
be offered incentives;
``(3) the time period during which incentives may be paid;
``(4) the number and amounts of voluntary separation
incentive payments to be offered; and
``(5) a description of how the agency will operate without
the eliminated positions and functions.
``(c) The Director of the Office of Management and Budget shall
review each agency's plan and may condition the Director's approval of
the plan upon the agency head's acceptance of modifications. A plan
under this section may not be implemented without the approval of the
Director, and, upon an agency head's request, the Director may approve
for implementation changes to a plan previously approved by the
Director.
``Sec. 3523. Authority to provide voluntary separation incentive
payments
``(a) A voluntary separation incentive payment under this
subchapter may be paid to an employee only as provided in the agency's
plan established under section 3522.
``(b) A voluntary incentive payment--
``(1) shall be offered to agency employees on the basis of
organizational unit, occupational series or level, geographic
location, specified periods during which eligible employees may
elect a voluntary separation incentive payment, skills,
knowledge, or other such job related factors, or a combination
of such factors;
``(2) shall be paid in a lump sum after the employee's
separation;
``(3) shall be equal to the lesser of--
``(A) an amount equal to the amount the employee
would be entitled to receive under section 5595(c) if
the employee were entitled to payment under such
section (without adjustment for any previous payment
made); or
``(B) an amount determined by the agency head, not
to exceed $25,000;
``(4) may be made only in the case of an employee who
voluntarily separates (whether by retirement or resignation)
under the provisions of this subchapter;
``(5) shall not be a basis for payment, and shall not be
included in the computation, of any other type of Government
benefit;
``(6) shall not be taken into account in determining the
amount of any severance pay to which the employee may be
entitled under section 5595, based on any other separation; and
``(7) shall be paid from appropriations or funds available
for the payment of the basic pay of the employee.
``Sec. 3524. Effect of subsequent employment with the Government
``(a) An individual who has received a voluntary separation
incentive payment under this subchapter and accepts any employment for
compensation with the Government of the United States (other than the
legislative branch) within five years after the date of the separation
on which the payment is based shall be required to pay, prior to the
individual's first day of employment, the entire amount of the
incentive payment to the agency that paid the incentive payment.
``(b)(1) If the employment under this section is with an agency
(other than the General Accounting Office), the United States Postal
Service, or the Postal Rate Commission, the Director of the Office of
Personnel Management may, at the request of the head of the agency,
waive the repayment if the individual involved possesses unique
abilities, or, in the case of an emergency involving a direct threat to
life or property, the individual has skills directly related to
resolving the emergency and will serve on a temporary basis only so
long as that individual's services are made necessary by the emergency.
``(2) If the employment under this section is with the judicial
branch, the Director of the Administrative Office of the United States
Courts may waive the repayment if the individual involved possesses
unique abilities and is the only qualified applicant available for the
position.
``(c) Employment under a personal services contract with the
Government of the United States (other than the legislative branch) is
included in the term `employment' with respect to subsection (a), but
is excluded with respect to subsection (b).
``Sec. 3525. Reduction of agency employment levels
``(a) The total number of funded employee positions in the agency
shall be reduced by one position for each vacancy created by the
separation of any employee who has received, or is due to receive, a
voluntary separation incentive payment under this subchapter. For the
purpose of this subsection, positions shall be counted on a full-time
equivalent basis.
``(b) The Director of the Office of Management and Budget shall
monitor the agency and take any action necessary to ensure that the
requirements of this section are met.
``(c) At the request of the head of an agency, the Director of the
Office of Management and Budget may waive application of subsection (a)
if the Director determines that the agency plan required by section
3522 satisfactorily demonstrates downsizing or other restructuring
within the agency would produce a cost-effective result.
``Sec. 3526. Regulations
``The Director of the Office of Personnel Management, with the
concurrence of the Director of the Office of Management and Budget, may
prescribe such regulations as may be necessary to implement the
provisions of this subchapter.''; and
(3) in the table of sections by striking the item relating
to subchapter II and the item relating to section 3551 and
inserting in its place the following:
``subchapter ii--voluntary separation incentive payments
``3521. Definitions.
``3522. Agency plans; approval.
``3523. Authority to provide voluntary separation incentive payment.
``3524. Effect of subsequent employment with the Government.
``3525. Reduction of agency employment levels.
``3526. Regulations.''.
(b) The Director of the Administrative Office of the United States
Courts may, by regulation, establish a program substantially similar to
the program established by subsection (a) for individuals serving in
the judicial branch. Waivers authorized with respect to agencies by
section 3525 of title 5, United States Code, as enacted by subsection
(a), shall, with respect to entities of the judicial branch, be made by
the Director of the Administrative Office of the United States Courts.
SEC. 102. PREVIOUSLY ENACTED VOLUNTARY SEPARATION INCENTIVES.
An agency head that has authority, under a statute enacted before
the date of enactment of the Act, to make voluntary separation
incentive payments, may continue to offer voluntary separation
incentives under that statute in accordance with its terms and
amendments.
SEC. 103. EFFECTIVE DATE.
This subtitle and the amendments made by this subtitle shall take
effect 60 days after the date of enactment.
Subtitle B--Federal Employee Voluntary Early Retirement Amendments
SEC. 111. VOLUNTARY EARLY RETIREMENT AUTHORITY.
(a) Title 5, United States Code, is amended--
(1) by amending section 8336(d)(2) to read as follows:
``(2)(A) has been employed continuously, by the agency in
which the employee is serving, for at least the 31-day period
ending on the date on which such agency requests the
determination referred to in subparagraph (D);
``(B) is serving under an appointment that is not time
limited;
``(C) is not in receipt of a decision notice of involuntary
separation for misconduct or unacceptable performance;
``(D) is separated from the service voluntarily during a
period in which, as determined by the Office of Personnel
Management (upon request of the agency) under regulations
prescribed by the Office--
``(i) such agency (or, if applicable, the component
in which the employee is serving) is undergoing
delayering, reorganization, reduction in force, or a
transfer of function, or other workforce restructuring
(or shaping); and
``(ii) employees serving in such agency (or
component) are likely to be--
``(I) separated;
``(II) subject to an immediate reduction in
the rate of basic pay (without regard to
subchapter VI of chapter 53, or comparable
provisions); or
``(III) identified as being in positions
which are becoming surplus or excess to the
agency's future ability to carry out its
mission effectively; and
``(E) as determined by the agency under regulations
prescribed by the Office, is within the scope of the offer of
voluntary early retirement, which may be made on the basis of--
``(i) one or more organizational units;
``(ii) one or more occupational series or levels;
``(iii) one or more geographical locations;
``(iv) specific window periods;
``(v) skills, knowledge, or such other similar job
related factors; or
``(vi) any appropriate combination of such
factors;''; and
(2) by amending section 8414(b)(1)(B) to read as follows:
``(B)(i) has been employed continuously, by the
agency in which the employee is serving, for at least
the 31-day period ending on the date on which such
agency requests the determination referred to in clause
(iv);
``(ii) is serving under an appointment that is not
time limited;
``(iii) is not in receipt of a decision notice of
involuntary separation for misconduct or unacceptable
performance;
``(iv) is separated from the service voluntarily
during a period in which, as determined by the Office
of Personnel Management (upon request of the agency)
under the regulations prescribed by the Office--
``(I) such agency (or, if applicable, the
component in which the employee is serving) is
undergoing delayering, reorganization,
reduction in force or transfer of function, or
other workforce restructuring (or shaping); and
``(II) employees serving in such agency (or
component) are likely to be--
``(aa) separated;
``(bb) subject to an immediate
reduction in the rate of basic pay
(without regard to subchapter VI of
chapter 53, or comparable provisions);
or
``(cc) identified as being in
positions which are becoming surplus or
excess to the agency's future ability
to carry out its mission effectively;
and
``(v) as determined by the agency under regulations
prescribed by the Office, is within the scope of the
offer of voluntary early retirement, which may be made
on the basis of--
``(I) one or more organizational units;
``(II) one or more occupational series or
levels;
``(III) one or more geographical locations;
``(IV) specific window periods;
``(V) skills, knowledge, or such other
similar job related factors; or
``(VI) any appropriate combination of such
factors;''.
(b) Section 7001 of Public Law 105-174 (112 Stat. 91), as amended
by section 651 of Public Law 106-58 (113 Stat. 480), is repealed.
Subtitle C--Civil Service Recruitment and Retention Incentives
SEC. 121. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.
(a) Chapter 57 of title 5, United States Code, is amended--
(1) by amending sections 5753 and 5754 to read as follows:
``Sec. 5753. Recruitment and relocation bonuses
``(a)(1) The Office of Personnel Management may authorize the head
of an agency to pay a bonus to an individual appointed or moved to a
position that is likely to be difficult to fill in the absence of such
a bonus, if the individual--
``(A)(i) is newly appointed as an employee of the Federal
Government; or
``(ii) is currently employed by the Federal Government and
moves to a new position in the same geographic area under
circumstances described in regulations of the Office; or
``(B) is currently employed by the Federal Government and
must relocate to accept a position stationed in a different
geographic area.
``(2) Except as provided by subsection (g), a bonus may be paid
under this section only to an employee covered by the General Schedule
pay system established under subchapter III of chapter 53.
``(b)(1) Payment of a bonus under this section shall be contingent
upon the employee entering into a written service agreement to complete
a period of employment with the agency, not to exceed four years. The
office may, by regulation, prescribe a minimum service period.
``(2) The agreement shall set forth the length of the required
service period, the amount of the bonus, the method of payment, and
other terms and conditions under which the bonus is payable, subject to
subsections (c) and (d) and regulations of the Office. The terms and
conditions for paying a bonus, as specified in the service agreement,
shall include the conditions under which the agreement may be
terminated before the agreed-upon service period has been completed and
the effect of the termination.
``(3) The agreement shall be made effective upon employment with
the agency or movement to a new position or geographic area, as
applicable, except that a service agreement with respect to a
recruitment bonus may be made effective at a later date under
circumstances described in regulations of the Office, such as when
there is an initial period of formal basic training.
``(c)(1) Except as provided in subsection (d), a bonus under this
section shall not exceed 25 percent of the annual rate of basic pay of
the employee at the beginning of the service period multiplied by the
number of years (or fractions thereof) in the service period, not to
exceed four years.
``(2) A bonus under this section may be paid as an initial lump
sum, in installments, as a final lump sum upon the completion of the
full service period, or in a combination of these forms of payment.
``(3) A bonus under this section is not part of the basic pay of an
employee for any purpose.
``(4) Under regulations of the Office, a recruitment bonus under
this section may be paid to an eligible individual before he or she
enters on duty.
``(d) The Office may authorize the head of an agency to waive the
limitation in subsection (c)(1) based on a critical agency need,
subject to regulations prescribed by the Office. Under such a waiver,
the amount of the bonus may be up to 50 percent of the employee's
annual rate of basic pay at the beginning of the service period
multiplied by the number of years (or fractions thereof) in the service
period, not to exceed 100 percent of the employee's annual rate of
basic pay at the beginning of the service period.
``(e) The Office shall require that, before paying a bonus under
this section, an agency shall establish a plan for paying recruitment
bonuses and a plan for paying relocation bonuses, subject to
regulations prescribed by the Office.
``(f) The Office shall prescribe such regulations as it considers
necessary for the administration of this section, including regulations
governing the repayment of a recruitment bonus in appropriate
circumstances when the agreed-upon service period has not been
completed.
``(g)(1) At the request of the head of an Executive agency, the
Office may extend coverage under this section to categories of
employees within the agency who otherwise would not be covered by this
section.
``(2) The Office shall not extend coverage to the head of an
Executive agency, including an Executive agency headed by a board or
other collegial body composed of two or more individual members.
``(h) For purposes of this section, `employee' has the meaning
given that term by section 2105, except that such term also includes an
employee described in subsection (c) of such section.
``Sec. 5754. Retention bonuses
``(a) The Office of Personnel Management may authorize the head of
an agency to pay a retention bonus to an employee, subject to
regulations prescribed by the Office, if--
``(1) the unusually high or unique qualifications of the
employee or a special need of the agency for the employee's
services makes it essential to retain the employee; and
``(2) the agency determines that, in the absence of a
retention bonus, the employee would be likely to leave--
``(A) the Federal service; or
``(B) for a different position in the Federal
service under conditions described in regulations of
the Office.
``(b) The Office may authorize the head of an agency to pay
retention bonuses to a group of employees in one or more categories of
positions in one or more geographic areas, subject to the requirements
of subsection (a)(1) and regulations prescribed by the Office, if there
is a high risk that a significant portion of employees in the group
would be likely to leave in the absence of retention bonuses.
``(c) Except as provided in subsection (i), a bonus may be paid
only to an employee covered by the General Schedule pay system
established under subchapter III of chapter 53.
``(d)(1) Payment of a retention bonus is contingent upon the
employee entering into a written service agreement with the agency to
complete a period of employment with the agency.
``(2) The agreement shall set forth the length of the required
service period, the amount of the bonus, the method of payment, and
other terms and conditions under which the bonus is payable, subject to
subsections (e) and (f) and regulations of the Office. The terms and
conditions for paying a bonus, as specified in the service agreement,
shall include the conditions under which the agreement may be
terminated before the agreed-upon service period has been completed and
the effect of the termination.
``(3) Notwithstanding paragraph (1), a written service agreement is
not required if the agency pays a retention bonus in biweekly
installments and sets the installment payment at the full bonus
percentage rate established for the employee with no portion of the
bonus deferred. In this case, the agency shall inform the employee in
writing of a decision to discontinue the retention bonus payments.
Except as provided in regulations of the Office, the employee shall
continue to accrue entitlement to the retention bonus through the end
of the pay period in which such written notice is provided.
``(4) An employee may not accrue entitlement to a retention bonus
during a service period previously established for that employee under
section 5753.
``(e)(1) Except as provided in subsection (f), a retention bonus,
which shall be stated as a percentage of the employee's basic pay for
the service period associated with the bonus, may not exceed 25 percent
of the employee's basic pay if paid under subsection (a) or 10 percent
of an employee's basic pay if paid under subsection (b).
``(2) A retention bonus may be paid to an employee in installments
after completion of specified periods of service or in a single lump
sum at the end of the full period of service required by the agreement.
An installment payment may not exceed the product derived from
multiplying the amount of basic pay earned in the installment period by
a percentage not to exceed the bonus percentage rate established for
the employee. If the installment payment percentage is less than the
bonus percentage rate, the accrued but unpaid portion of the bonus is
payable as part of the final installment payment to the employee after
completion of the full service period under the terms of the service
agreement.
``(3) A retention bonus is not part of the basic pay of an employee
for any purpose.
``(f) Upon the request of the head of an agency, the Office may
waive the limit established under subsection (e)(1) and permit the
agency head to pay an otherwise eligible employee or category of
employees retention bonuses of up to 50 percent of basic pay, based on
a critical agency need.
``(g) The Office shall require that, before paying a bonus under
this section, an agency shall establish a plan for paying retention
bonuses, subject to regulations prescribed by the Office.
``(h) The Office shall prescribe such regulations as it considers
necessary for the administration of this section.
``(i)(1) At the request of the head of an Executive agency, the
Office may extend coverage under this section to categories of
employees within the agency who otherwise would not be covered by this
section.
``(2) The Office shall not extend coverage under this section to
the head of an Executive agency, including an Executive agency headed
by a board or other collegial body composed of two or more individual
members.
``(j) For purposes of this section, `employee' has the meaning
given that term by section 2105, except that such term also includes an
employee described in subsection (c) of such section.
``(2) in the table of sections by amending the item
relating to section 5754 to read as follows:
``5754. Retention bonuses.''.
``(b) Section 407 of the Federal Employees Pay Comparability Act of
1990 (104 Stat. 1467; 5 U.S.C. 5305 note) is repealed.
SEC. 122. ACADEMIC DEGREE TRAINING.
``Chapter 41 of title 5, United States Code, is amended--
(1) by amending section 4107 to read as follows:
``Sec. 4107. Academic degree training'';
``(a) Subject to subsection (b), an agency may select and assign an
employee to academic degree training and may pay or reimburse the costs
of academic degree training from appropriated or other available funds
if such training--
``(1) contributes significantly to meeting an identified
agency training need, to resolving an identified agency
staffing problem, or to accomplishing goals in the agency's
strategic plan:
``(2) is part of a planned, systematic, and coordinated
agency employee development program linked to accomplishing the
agency's strategic goals and objectives; and
``(3) is accredited and is provided by a college or
university that is accredited by a nationally recognized body.
``(b) In exercising authority under subsection (a), an agency
shall--
``(1) consistent with the merit system principles set forth
in paragraphs (2) and (7) of section 2301(b), take into
consideration the need to--
``(A) maintain a balanced workforce in which women,
members of racial and ethnic minority groups, and
persons with disabilities are appropriately represented
in Government service; and
``(B) provide employees effective education and
training to improve organizational and individual
performance;
``(2) assure that the training is not for the sole purpose
of providing an employee an opportunity to obtain an academic
degree or to qualify for appointment to a particular position
for which the academic degree is a basic requirement; and
``(3) assure that no authority under this subsection is
exercised on behalf of any employee occupying or seeking to
qualify for appointment to any position that is excepted from
the competitive service because of its confidential policy-
determining, policy-making, or policy-advocating character.'';
and
(2) in the table of sections by mending the item relating
to section 4107 to read as follows:
``4107. Academic degree training.''.
SEC. 123. PROFESSIONAL CREDENTIALS.
Chapter 57 of title 5, United States Code, as amended by section
121, is further amended--
(1) by adding at the end of the following new section:
``Sec. 5757. Expenses for credentials
``(a) An agency may, when consistent with the agency's strategic
goals and objectives, use appropriated or other available funds to pay
for--
``(1) employee credentials, including professional
accreditation, state-imposed and professional licenses, and
professional certifications; and
``(2) examinations to obtain these credentials.
``(b) No authority under subsection (a) may be exercised on behalf
of any employee occupying or seeking to qualify for appointment to any
position which is excepted from the competitive service because of its
confidential, policy-determining, policy-making, or policy-advocating
character.
``(c) An agency may, in accordance with regulations of the Office
of Personnel Management and subject to the same terms and conditions
that apply to continued service agreements under section 4108, require
such an agreement in conjunction with payment of expenses authorized
under subsection (a).''; and
(2) in the table of sections by adding at the end the
following new item:
``5757. Expenses for credentials.''.
SEC. 124. CORRECTION OF PAY ADMINISTRATION PROBLEMS.
(a) Chapter 53 of title 5, United States Code, is amended--
(1) by amending section 5302(8) to read as follows:
``(8) the term `rates of pay under the General Schedule',
`rates of pay for the General Schedule', or `scheduled rates of
basic pay' means the unadjusted rates of basic pay in the
General Schedule as established by section 5332, excluding
additional pay of any kind; and'';
(2) in section 5305--
(A) by amending subsection (a) to read as follows:
``(a)(1) Whenever the Office of Personnel Management finds that the
Government's recruitment or retention efforts with respect to one or
more occupations in one or more areas or locations are, or are likely
to become, significantly handicapped due to any of the circumstances
described in subsection (b), the Office may establish for the areas or
locations involved, with respect to individuals in positions paid under
any of the pay systems referred to in subsection (c), higher minimum
rates of pay for one or more grades or levels, occupational groups,
series, classes, or subdivisions thereof, and may make corresponding
increases in all rates to the pay range for each such grade or level.
However, a minimum rate so established may not exceed the maximum rate
of basic pay (excluding any locality-based comparability payment under
section 5304 or similar provision of law) for the grade or level by
more than 30 percent, and no rate may be established under this section
in excess of the rate of basic pay payable for level IV of the
Executive Schedule. In the case of individuals not subject to the
provisions of this title governing appointment in the competitive
service, the President may designate another agency to authorize
special rates under this section.
``(2) The head of an agency may determine that a category of
employees of the agency will not be covered by a special rate
authorization established under this section. The agency head shall
provide formal written notice to the Office of Personnel Management (or
other agency designated by the President to authorize special rates)
which identifies the specific category or categories of employees that
will not be covered by special rates authorized under this section. If
the head of an agency removes a category of employees from coverage
under a special rate authorization after that authorization takes
effect, the loss of coverage will take effect on the first day of the
first pay period after the date of the notice.'';
(B) by amending subsection (b)(4) to read as
follows:
``(4) any other circumstances which the Office of Personnel
Management (or such agency as the President may designate)
considers appropriate.'';
(C) in subsection (d)--
(i) by striking ``President'' and inserting
``Office of Personnel Management''; and
(ii) by striking ``he'' and inserting ``the
President'';
(D) in subsection (e) by striking ``basic pay'' and
inserting ``pay'';
(E) by amending subsection (f) to read as follows:
``(f) When a schedule of special rates established under this
section is adjusted under subsection (d), a covered employee's special
rate will be adjusted in accordance with conversion rules prescribed by
the Office of Personnel Management or by such agency as the President
may designate.'';
(F) in subsection (g)(1)--
(i) by striking ``basic pay'' and inserting
``pay''; and
(ii) by striking ``President (or his
designated agency)'' and inserting ``Office of
Personnel Management (or such agency as the
President may designate)'';
(G) by amending subsection (h) to read as follows:
``(h) Any employee's entitlement to a rate of pay established under
this section terminates when the employee is entitled to a higher rate
of pay (including basic pay as adjusted to include any locality-based
comparability payment under section 5304 or similar provision of
law).''; and
(H) by adding at the end the following new
subsections:
``(i) When an employee who is receiving a rate of pay established
under this section moves to a new official duty station at which
different pay schedules apply, the employee shall be entitled to the
rates of pay applicable in the new pay area based on the employee's
position, grade and step (or relative position in the rate range)
before the movement, as determined under regulations prescribed by the
Office of Personnel Management or other agency designated by the
President under subsection (a). Such pay conversion upon geographic
movement shall be effected before processing any other simultaneous pay
action (other than a general pay adjustment).
``(j) A rate established under this section shall be considered to
be part of basic pay for purposes of subchapter III of chapter 83,
chapter 84, chapter 87, subchapter V of chapter 55, section 5941, and
for such other purposes as may be expressly provided for by law or as
the Office of Personnel Management may by regulation prescribe.'';
(3) in section 5334--
(A) is subsection (b) by adding at the end the
following: ``If an employee's rate after promotion or
transfer is greater than the maximum rate of basic pay
for the employee's grade, that rate shall be treated as
a retained rate under section 5363. The Office of
Personnel Management shall prescribe by regulation the
circumstances under which and the extent to which
special rates under section 5305 (or similar provision
of law) or locality-adjusted rates under section 5304
(or similar provision of law) are considered to be
basic pay in applying the provisions of this
subsection.''; and
(B) by adding at the end the following new
subsection:
``(g) When an employee moves to a new official duty station at
which different pay schedules apply, the employee shall be entitled to
the rates of pay applicable in the new pay area based on the employee's
position, grade and step (or relative position in the rate range)
before the movement. Such pay conversion upon geographic movement shall
be effected before processing any other simultaneous pay action (other
than a general pay adjustment).'';
(4) in section 5361--
(A) by striking paragraphs (3) and (4) and
redesignating paragraphs (5)-(7) as paragraphs (3)-(5);
(B) in paragraph (4) as redesignated by striking
``and'' at the end;
(C) in paragraph (5) as redesignated by striking
the period and inserting a semicolon; and
(D) by adding at the end the following new
paragraphs:
``(6) `rate of basic pay' means--
``(A) the rate of pay prescribed by law or
regulation for the position held by an employee before
any deductions or additions of any kind, but including
any applicable locality-based payment under section
5304 or similar provision of law, any applicable
special salary rate under section 5305 or similar
provision of law, and any applicable existing retained
rate of pay established under section 5363 or similar
provision of law; and
``(B) in the case of a prevailing rate employee,
the scheduled rate of pay determined under section
5343;
``(7) `former highest applicable rate of basic pay' means
the highest applicable rate of basic pay payable to the
employee immediately before the action that triggers pay
retention under section 5363; and
``(8) `highest applicable basic pay rate range' means the
range of rates of basic pay for the grade or level of the
employee's current position with the highest maximum rate,
except as otherwise provided in regulations prescribed by the
Office of Personnel Management in cases where another rate
range provides higher rates only in the lower portion of the
range.'';
(5) in section 5363--
(A) in subsection (a) by amending the matter
following paragraph (4) to read as follows: ``is
entitled to pay retention under the conditions set
forth in this section. Notwithstanding any other
provision, this section may not be applied to employees
whose rate of basic pay is reduced solely because of
the recomputation of pay upon movement to a new
official duty station at which different pay schedules
apply. When a geographic move is accompanied by a
simultaneous pay action that reduces the employee's
rate of basic pay after the employee's pay has been
recomputed to reflect the geographic move, this section
shall be applied, if otherwise applicable.''; and
(B) by striking subsections (b) and (c) and
inserting the following new subsections:
``(b) If an employee is entitled to pay retention under subsection
(a), the following rules apply in determining the employee's rate of
pay:
``(1) If the employee's former highest applicable rate of
basic pay is less than or equal to the maximum rate of the
highest applicable basic pay rate range for the employee's
current position, the employee is entitled to the lowest
payable rate of basic pay in that rate range that equals or
exceeds the former rate, and pay retention ceases to apply; and
``(2) If the employee's former highest applicable rate of
basic pay exceeds the maximum rate of the highest applicable
basic pay rate range for the employee's current position, the
employee is entitled to a retained rate equal to the lesser
of--
``(A) the employee's former highest applicable rate
of basic pay; or
``(B) 150 percent of the maximum rate of the
highest applicable basic pay rate range for the
employee's position.
``(c) An employee's retained rate shall be increased at the time of
any increase in the maximum rate of the highest applicable basic pay
rate range for the employee's position by 50 percent of the dollar
increase in that maximum rate.
``(d) The rate of pay for an employee who is receiving a retained
rate under this section and who is moved to a new official duty station
at which different pay schedules apply shall be determined under
regulations prescribed by the Office of Personnel Management consistent
with the purposes of this section.
``(e) A retained rate shall be considered part of basic pay for
purposes of this subchapter and for purposes of subchapter III of
chapter 83, chapters 84 and 87, subchapter V of chapter 55, section
5941, and for such other purposes as may be expressly provided for by
law or as the office of Personnel Management may by regulation
prescribed. For other purposes, the Office shall prescribe by
regulation what constitutes basic pay for employees receiving a
retained rate.
``(f) The preceding provisions of this section do not apply (or
shall cease to apply) to an employee who--
``(1) has a break in service of one workday or more;
``(2) is entitled by operation of this subchapter to
chapter 51 to 53 to a rate of basic pay which is equal to or
higher than, or declines a reasonable offer of a position the rate of
basic pay for which is equal to or higher than, the rate to which the
employee is entitled under this section; or
``(3) is demoted for personal cause or at the employee's
request.''; and
(6) in section 5365(b) by inserting after ``this
subchapter'' the first time it appears the following:
``(subject to any conditions or limitations the Office may
establish)''.
(b) Section 403(c) of the Federal Employees Pay Comparability Act
of 1990 [Public Law 101-509, Sec. 529] is amended by striking
everything after the parenthetical phrase and inserting the following:
``and shall be basic pay for all purposes. The rates shall be adjusted
at the time of adjustments in the General Schedule to maintain the step
linkage set forth in subsection (b)(2).''.
(c) Subject to any regulations the Office of Personnel Management
may prescribe, any employee in a covered pay schedule who is receiving
a retained rate under section 5363 of title 5, United States Code, or
similar authority on the effective date of this Act shall have his or
her pay converted on that date. The newly applicable retained rate
shall equal the formerly applicable retained rate as adjusted to
include any applicable locality-based payment under section 5304 of
title 5, United States Code, or similar provision of law. Any employee
in a covered pay system receiving a rate that exceeds the maximum rate
of the highest applicable basic pay rate range for the employee's
position (as defined in section 5361(8) of such title 5, as amended by
this Act) under any authority shall be considered to be receiving a
retained rate under section 5363 of title 5.
SEC. 125. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR PART-TIME
SERVICE.
Section 8339(p) of title 5, United States Code, is amended by
adding at the end the following new paragraph:
``(3) In the administration of paragraph (1)--
``(A) subparagraph (A) of such paragraph shall
apply to any service performed before, on, or after
April 7, 1986;
``(B) subparagraph (B) of such paragraph shall
apply to all service performed on a part-time or full-
time basis on or after April 7, 1986; and
``(C) any service performed on a part-time basis
before April 7, 1986, shall be credited as service
performed on a full-time basis.''.
SEC. 126. PROMOTIONAL ITEMS RECEIVED PURSUANT TO OFFICIAL TRAVEL.
(a) Travel and Transportation Allowances.--Section 404 of title 37,
United States Code, is amended--
(1) by redesignating subsection (j) as subsection (k); and
(2) by inserting after subsection (i) the following new
subsection:
``(j) Promotional items a member receives as a consequence of
travel paid by the United States, or accepted under the provisions of
section 1353 of title 31, United States Code, may be retained by the
member. Promotional items include but are not limited to frequent
travel programs, upgrades, and access to carrier clubs or facilities.
Such items shall be obtained under the same terms as provided the
general public and shall be at no additional cost.''.
(b) Per Diem Allowances.--Section 5702 of title 5, United States
Code, is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following new
subsection (c):
``(c) Notwithstanding the provisions of subsection (d), promotional
items an employee (including justices and judges) receives as a
consequence of travel paid by the United States, or accepted pursuant
to the provisions of section 1353 of title 31, United States Code, may
be retained by the employee. Promotional items include but are not
limited to frequent travel programs, upgrades, and access to carrier
clubs or facilities. Such items shall be obtained under the same terms
as provided the general public and shall be at no additional cost.''.
(c) Amendment to Foreign Service Act.--Section 901 of the Foreign
Service Act of 1980 (22 U.S.C. 4081) is amended--
(1) by inserting ``(a)'' before ``The Secretary''; and
(2) by adding at the end the following new subsection (b):
``(b) Promotional items a member of the Service receives as a
consequence of travel paid by the United States, or accepted pursuant
to the provisions of section 1353 of title 31, United States Code, may
be retained by the member. Promotional items include but are not
limited to frequent travel programs, upgrades, and access to carrier
clubs or facilities. Such items shall be obtained under the same terms
as provided the general public and shall be at no additional cost.''.
(d) Repeal of Limitation on the Use of Travel Awards.--Section 6008
of the Federal Acquisition Streamlining Act of 1994 (Public Law 103-
355; 108 Stat. 3367) is repealed.
SEC. 127. STUDENT VOLUNTEER TRANSIT SUBSIDY.
(a) Section 7905 of Title 5, United States Code, is amended in
subsection (a)(1), by striking ``and a member of a uniformed service''
and inserting ``, a member of a uniformed service, and a student who
provides voluntary services pursuant to 5 U.S.C. 3111.''
(b) Conforming Amendment.--Section 3111(c)(1) of title 5, United
States Code, is amended by striking ``chapter 81 of this title'' and
inserting ``section 7905 (relating to commuting by means other than
single-occupancy motor vehicles), chapter 81.''
SEC. 128. EFFECTIVE DATE.
(a) Except as otherwise provided by this section, the amendments
made by the preceding sections shall take effect on the first day of
the first pay period beginning on or after the 180th day after
enactment of this subtitle with the exception of sections 126 and 127,
which shall take effect immediately upon enactment of this subtitle.
(b) A recruitment or relocation bonus service agreement that was
authorized under section 5753 of title 5, United States Code, before
the effective date set forth in subsection (a) shall continue, until
its expiration, to be subject to section 5753 as in effect on the day
before such effective date.
(c) Payment of a retention allowance that was authorized under
section 5754 of title 5, United States Code, before the effective date
set forth in subsection (a) shall continue, subject to section 5754 as
in effect on the day before such effective date, until the retention
allowance is reauthorized or terminated (but no longer than one year
after such effective date).
(d) The amendments made by section 124 shall take effect on the
date of enactment of this Act and shall apply only with respect to
individuals who, on or after such date of enactment, separate from
employment subject to subchapter III of chapter 83, or chapter 84, of
title 5, United States Code.
Subtitle D--Promotion of Results-Oriented Performance Evaluation and
Compensation for Senior Executives
SECTION 131. CAP ON TOTAL ANNUAL COMPENSATION.
Section 5307(a) of title 5, United States Code, is amended by
adding at the end the following new paragraph:
``(3) Notwithstanding paragraph (1), the total payment
referred to under such paragraph with respect to an employee
paid under section 5376 or 5383 shall not exceed the total
annual compensation payable to the Vice President under section
104 of title 3, United States Code. Regulations prescribed
under subsection (c) may extend the application of this
paragraph to other equivalent categories of employees.''.
SEC. 132. REPEAL OF SENIOR EXECUTIVE RECERTIFICATION.
(a) Title 5, United States Code, is amended--
(1) in chapter 33--
(A) in section 3393(g) by striking ``3393a,'';
(B) by repealing section 3393a; and
(C) in the analysis by striking the item relating
to section 3393a;
(2) in subchapter V of chapter 35--
(A) in section 3592(a)--
(i) in paragraph (1) by striking the comma
at the end and inserting''; or'';
(ii) in paragraph (2) by striking ``of this
title, or'' at the end and inserting a
semicolon;
(iii) by striking paragraph (3); and
(iv) by striking the last sentence;
(B) in section 3593(a) by amending paragraph (2) to
read as follows:
``(2) the appointee left the Senior Executive Service for
reasons other than misconduct, neglect of duty, malfeasance, or
less than fully successful executive performance as determined
under subchapter II of chapter 43.''; and
(C) in section 3594(b)--
(i) in paragraph (1) by striking ``of this
title; or'' at the end and inserting''; or'';
(ii) in paragraph (2) by striking ``of this
title; or'' at the end and inserting a
semicolon; and
(iii) by striking paragraph (3);
(3) in section 7701(c)(1)(A) by striking ``or removal from
the Senior Executive Service for failure to be recertified
under section 3393a'';
(4) in subchapter III of chapter 83--
(A) in section 8336(h)(1) by striking ``for failure
to be recertified as a senior executive under section
3393a or''; and
(B) in section 8339(h), in the first sentence, by
striking''; except that such reduction shall not apply
in the case of an employee retiring under section
8336(h) for failure to be recertified as a senior
executive''; and
(5) in subchapter II of chapter 84--
(A) in section 8414(a)(1) by striking ``for failure
to be recertified as a senior executive under section
3393a or''; and
(B) in section 8421(a)(2) by striking ``, except
that an individual entitled to an annuity under section
8414(a) for failure to be recertified as a senior
executive shall be entitled to an annuity supplement
without regard to such applicable minimum retirement
age''.
(b) Notwithstanding the amendments made by subsection (a)(2)(A) of
this section, an appeal under the final sentence of section 3592(a) of
title 5, United States Code, that is pending on the day before the
enactment of this Act--
(1) shall not abate by reason of the enactment of such
amendments; and
(2) shall continue as if such amendments had not been
enacted.
(c) The amendment made by subsection (a)(2)(B) shall not apply with
respect to an individual who, before 90 days after the date of
enactment of this Act, leaves the Senior Executive Service for failure
to be recertified as a senior executive under section 3393a of title 5,
United States Code.
SEC. 133. ANNUAL LEAVE ENHANCEMENTS.
(a) Chapter 63 of title 5, United States Code, is amended--
(1) in section 6303(a)--
(A) in paragraph (2) by striking ``and'' at the
end;
(B) in paragraph (3) by striking the period at the
end and inserting ``; and''; and
(C) by inserting after paragraph (3) the following:
``(4) one day for each full biweekly pay period for an
employee in a position paid under section 5376 or 5383, or for
an employee in an equivalent category for which the minimum
rate of basic pay is greater than GS-15, step 10, to which the
application of the paragraph is extended by the Office by
regulation under section 6311.'';
(2) by inserting after section 6304 the following new
section:
``Sec. 6304a. Annual leave.
``(a) The head of an agency may provide an annual leave credit to
an employee who is newly appointed from outside the civil service to a
position paid under section 5376 or 5383, or for an employee in an
equivalent category for which the minimum rate of basic pay is greater
than GS-15, step 10, to which the application of this section is
extended by the Office by regulation under section 6311, when the
agency head determines that the credit is needed to complete the
recruitment of a highly qualified candidate.
``(b) The amount of the annual leave credit under subsection (a)
may not exceed 10 full days and is in addition to annual leave accrued
by the employee under section 6303.
``(c) In the case of an employee who receives an annual leave
credit under subsection (a) and who separates prior to completing one
year of service, the maximum amount of a lump-sum payment under section
5551 shall be equal to the amount payable for annual leave actually
accrued.''; and
(3) in the table of sections by inserting the following
item after the item relating to section 6304:
``6304a. Annual leave credit.''.
SEC. 134. EFFECTIVE DATE.
The amendments made by this subtitle shall take effect on the first
day of the first pay period beginning on or after 180 days following
the date of enactment of this subtitle.
Subtitle E--Federal Human Resources Management Innovations
SEC. 141. PROJECT MANAGEMENT AND ALTERNATIVE PERSONNEL SYSTEMS.
(a) Chapter 47 of title 5, United States Code, is amended--
(1) by amending section 4701--
(A) in subsection (a)--
(i) by striking ``(a)'';
(ii) by amending paragraph (1) to read as
follows:
``(1) `agency' means an Executive agency and any entity
that is subject to any provision of this title that could be
waived under section 4703, but does not include--
``(A) the Federal Bureau of Investigation, the
Central Intelligence Agency, the Defense Intelligence
Agency, the National Imagery and Mapping Agency, the
National Security Agency, and, as determined by the
President, any Executive agency or unit thereof which
is designated by the President and which has as its
principal function the conduct of foreign intelligence
or counterintelligence activities; or
``(B) the General Accounting Office;''
(iii) in paragraph (4) by striking ``and''
at the end;
(iv) by redesignating paragraph (5) as
paragraph (6); and
(v) by inserting after paragraph (4) the
following new paragraph:
``(5) `modification' means a significant change in one or
more of the elements of a demonstration project plan as
described in section 4703(b)(1); and''; and
(B) by striking subsection (b); and
(2) in section 4703--
(A) in subsection (a)--
(i) by striking ``conduct and evaluate
demonstration projects'' and inserting
``conduct, modify, and evaluate demonstration
projects'';
(ii) by striking ``, including any law or
regulation relating to--'' and all that follows
and inserting a period; and
(iii) by adding at the end the following:
``The decision to initiate or modify a project
under this section shall be made by the
Office.'';
(B) by amending subsection (b) to read as follows;
``(b) Before conducting or entering into any agreement or contract
to conduct a demonstration project, the Office shall ensure--
``(1) that each project has a plan which describes--
``(A) its purpose;
``(B) the employees to be covered;
``(C) its anticipated outcomes and resource
implications, including how the project relates to
carrying out the agency's strategic plan, including
meeting performance goals and objectives, and
accomplishing its mission;
``(D) the personnel policies and procedures the
project will use that differ from those otherwise
available and applicable, including a specific citation
of any provisions of law, rule, or regulation to be
waived and a specific description of any contemplated
action for which there is a lack of specific authority;
``(E) an evaluation plan, including the methodology
and criteria for evaluation; and
``(F) the agency's system for ensuring that the
project is implemented in a manner consistent with
merit system principles;
``(2) notification of the proposed project to employees who
are likely to be affected by the project;
``(3) an appropriate comment period;
``(4) publication of the final plan in the Federal
Register;
``(5) notification of the final project at least 30 days in
advance of the date any project proposed under this section is
to take effect to employees who are likely to be affected by
the project;'';
``(6) publication of any subsequent modification in the
Federal Register; and
``(7) notification of any subsequent modification to
employees who are included in the project.'';
(C) in subsection (c)--
(i) by amending paragraph (1) to read as
follows:
``(1) any provision of chapter 63 or subpart G of part III
of this title;'';
(ii) by redesignating paragraphs (4) and
(5) as paragraphs (6) and (7), respectively;
(iii) by inserting after paragraph (3) the
following new paragraphs:
``(4) section 7342, 7351, or 7353;
``(5) Appendix 4 of this title;'';
(iv) in paragraph (6) as redesignated, by
striking ``paragraph (1), (2), or (3) of this
subsection; or'' and inserting ``paragraphs (1)
through (5);''; and
(v) in paragraph (7) as redesignated, by
adding at the end the following:
``Notwithstanding section 2302(e)(1), for
purposes of applying section 2302(b)(11) in a
demonstration project under this chapter,
`veterans' preference requirement' means any of
the specific provisions of the demonstration
project plan that are designed to ensure that
the project is consistent with veterans'
preference principles.'';
(D) by amending subsections (d) and (e) to read as
follows:
``(d) Before the end of the five-year period beginning on the date
on which a demonstration project takes effect, the Office shall
determine whether the project shall be--
``(1) terminated;
``(2) continued beyond the end of such five-year period for
purposes of evaluation; or
``(3) converted to an alternative personnel system under
chapter 49.
``(e) The Office may terminate a demonstration project under this
chapter if it determines that the project--
``(1) is not consistent with merit system principles set
forth in section 2301, veterans preference principles, or the
provisions of this chapter; or
``(2) otherwise imposes a substantial hardship on, or is
not in the best interests of, the public, the Government,
employees, or eligibles.
(E) by amending subsections (h) and (i) to read as
follows:
``(h) The Office shall ensure that each demonstration project is
evaluated. Each evaluation shall assess--
``(1) the project's compliance with the plan developed
under subsection (b)(1); and
``(2) the project's impact on improving public management.
``(i) Upon request of the Director of the Office of Personnel
Management, agencies shall cooperate with and assist the Office in any
evaluation or conversion undertaken under subsection (h) and provide
the Office with requested information and reports relating to the
conducting of demonstration projects in their respective agencies.''.
(b) title 5, United States Code, is amended--
(1) by inserting after chapter 47 the following new
chapter:
``CHAPTER 49--ALTERNATIVE PERSONNEL SYSTEMS
``Sec. 4901. Definitions
``For the purpose of this chapter--
``(i) `agency' has the meaning set forth in section
4701(a)(1);
``(2) `alternative personnel system' means a system for
human resources management in an agency which--
``(A)(i) requires a waiver (except as prohibited
under section 4902(c)) of one or more of the provisions
of this title or any rule or regulation prescribed
under this title; or
``(ii) exercises authorities not specifically in
law, rule, or regulation;
``(B) is designed to improve the agency's ability
to carry out its strategic plan and accomplish its
mission efficiently and effectively; and
``(C)(i) is similar to one or more systems already
tested successfully in at least one other agency as a
demonstration project under chapter 47; or
``(ii) has otherwise been determined by the Office
of Personnel Management not to require testing as a
demonstration project before being implemented by the
agency as an alternative personnel system;
``(3) `eligible' has the meaning set forth in section
4701(a)(3);
``(4) `employee' has the meaning set forth in section
4701(a)(2); and
``(5) `modification' means a significant change in one or
more of the elements of an alternative personnel system plan as
described in section 4902(b)(1).
``Sec. 4902. Alternative personnel systems
``(a) An agency may implement and subsequently modify one or more
alternative personnel systems in accordance with the provisions of this
chapter. An alternative personnel system shall not be limited by any
lack of specific authority under this title to take the action
contemplated or, except as otherwise provided in this section, by any
provision of this title of any rule or regulation prescribed under this
title which is inconsistent with the action.
``(b) Except as provided in section 4903(b), before implementing an
alternative personnel system an agency shall--
``(1) develop a plan for such system which describes--
``(A) its purposes;
``(B) the employees to be covered;
``(C) its anticipated outcomes and resource
implications, including how the system relates to
carrying out the agency's strategic plan, including
meeting performance goals and objectives, and
accomplishing its mission;
``(D) the personnel policies and procedures the
alternative system will use that differ from those
otherwise available and applicable, including a
specific citation of any provisions of law, rule, or
regulation to be waived and a specific description of
any contemplated action for which there is a lack of
specific authority; and
``(E) the agency's system for ensuring that the
alternative system is consistent with merit system
principles.
``(2) submit the plan and any subsequent modification to
the Office of Personnel Management for approval; and
``(3) provide advance notification of the plan and
subsequent modification to employees who are likely to be
affected by the alternative personnel system.
``(c) No alternative personnel system under this section may
provide for a waiver of--
``(1) any provision of chapter 63 or subpart G of part III
of this title;
``(2)(A) any provision of law referred to in section
2302(b)(1); or
``(B) any provision of law implementing any provision of
law referred to in section 2302(b)(1) by--
``(i) providing for equal employment opportunity
through affirmative action; or
``(ii) providing any right or remedy available to
any employee or applicant for employment in the civil
service;
``(3) any provision of chapter 15 or subchapter III of
chapter 73;
``(4) section 7342, 7351, or 7353;
``(5) Appendix 4 of this title;
``(6) any rule or regulation prescribed under any provision
of law referred to in paragraphs (1) through (5); or
``(7) any provision of chapter 23, or any rule or
regulation prescribed under this title, if such waiver is
inconsistent with any merit system principle or any provision
thereof relating to prohibited personnel practices.
Notwithstanding section 2302(e)(1), for purposes of applying
section 2302(b)(11) in an alternative personnel system under
this chapter, `veterans' preference requirement' means any of
the specific provisions of the alternative personnel system
plan that are designed to ensure that the system is consistent
with veterans' preference principles.''
``(d) Employees within a unit with respect to which a labor
organization is accorded exclusive recognition under chapter 71 shall
not be included within any alternative personnel system implemented or
subsequently modified under this chapter--
``(1) if the alternative system would violate a collective
bargaining agreement (as defined in section 7103(8)) between
the agency and the labor organization, unless there is another
written agreement with respect to the alternative system
between the agency and the organization permitting the
inclusion; or
``(2) if the alternative system would not violate such a
collective bargaining agreement, until there has been
consultation or negotiation, as appropriate, by the agency with
the labor organization.
``(e) Employees within any unit with respect to which a labor
organization has not been accorded exclusive recognition under chapter
71 shall not be included in any alternative personnel system
implemented or subsequently modified under this chapter unless there
has been agency consultation regarding the alternative system with the
employees in the unit.
``Sec. 4903. Responsibilities of the Office of Personnel Management
``(a)(1) No alternative personnel system under this chapter may be
implemented or subsequently modified without the approval of the Office
of Personnel Management. Approval shall be based on a determination
that the proposed alternative system or any subsequent modification
meets all of the requirements of this chapter. The Office shall inform
the agency of the approval or disapproval of its proposed alternative
system within 90 days after receiving a complete plan as described in
section 4902(b)(1).
``(2) The Office shall publish in the Federal Register a notice of
its approval of each alternative personnel system. The notice shall
include a summary of the alternative system. This notice requirement
shall apply to a modification of an alternative personnel system which
is determined by the Office in its sole discretion to be sufficiently
significant to warrant publication.
``(b) At the request of the agency and subject to sections
4703(d)(2) and 4902(d), the Office may convert a demonstration project
under chapter 47 to an alternative personnel system, without requiring
the agency to develop a plan as described in section 4902(b), when the
Office determines that the project has demonstrated sufficient success
to be implemented permanently in the agency. When a project is
converted under this subsection, the demonstration project plan under
section 4703(b)(1), including any subsequent modifications, is deemed
to be the alternative personnel system plan under section 4902(b)(1).
``(c) The Office may terminate an alternative personnel system if
it determines that the alternative system--
``(1) is not consistent with merit system principles set
forth in section 2301, veterans preference principles, or the
provisions of this chapter; or
``(2) otherwise imposes a substantial hardship on, or is
not in the best interests of, the public, the Government,
employees, or eligibles.
``Sec. 4904. Regulations
``The Office of Personnel Management shall prescribe regulations
needed to administer this chapter.''; and
(2) in the table of sections by inserting after the items
relating to chapter 47 the following:
``CHAPTER 49--ALTERNATIVE PERSONNEL SYSTEMS
``Sec.
``4901. Definitions.
``4902. Alternative personnel systems.
``4903. Responsibilities of the Office of Personnel Management.
``4904. Regulations.''.
(c) The table of chapters for Part III of title 5, United States
Code, is amended by inserting after the item relating to chapter 47 the
following new item:
``49. Alternative Personnel Systems............................ 4901''.
(d)(1) The demonstration project established under section 10 of
the National Bureau of Standards Authorization Act for Fiscal Year 1987
(15 U.S.C. 275 note) shall become an alternative personnel system under
chapter 49 of title 5, United States Code, on the effective date set
forth in section 142.
(2) Section 10 of the National Technology Transfer and Advancement
Act of 1995 is repealed.
(e)(1) The demonstration project authorized by section 4703 of
title 5, United States Code, at the Naval Weapons Center, China Lake,
California, and at the Naval Ocean Systems Center, San Diego,
California, as subsequently modified and continued, shall become an
alternative personnel system under chapter 49 of title 5, United States
Code, on the effective date set forth in section 142.
(2) Section 342(a) of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2663), as amended, is
repealed. Any demonstration project authorized by such section 342(a),
as amended, shall become a demonstration project under chapter 47 of
title 5, United States Code, on the effective date set forth in section
142.
(f)(1) The demonstration project authorized by section 4703 of
title 5, United States Code, at the United States Department of
Agriculture, as subsequently modified and continued, shall become an
alternative personnel system under chapter 49 of title 5 on the
effective date set forth in section 142.
(2) Section 749 of the Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act, 1999, as
contained in section 101(a) of the Omnibus Consolidated and Emergency
Supplemental Appropriations Act, 1999 (Public Law 105-277), is
repealed.
(g) Section 1104 of title 5, United States Code, is amended--
(1) in subsection (b)--
(A) by amending paragraph (1) to read as follows:
``(b)(1) The Office shall establish standards which shall apply
to--
``(A) the activities of the Office or any other agency
under authority delegated under subsection (a); and
``(B) any agency operating a demonstration project under
chapter 47 or an alternative personnel system under chapter
49.''; and
(B) in paragraph (2) by striking ``of this
section'' and inserting ``and any activities under
chapter 47 or 49''; and
(2) in subsection (c) by striking ``pursuant to authority
delegated under subsection
(a)(2) of this section'' and inserting ``under chapter 47 or 49 or
pursuant to authority delegated under subsection (a)(2)''.
SEC. 142. EFFECTIVE DATE.
The amendments made by this subtitle shall take effect 180 days
after enactment.
Subtitle F--Federal Human Resources Hiring Flexibility
SEC. 151. EMPLOYMENT FLEXIBILITY AMENDMENTS.
Chapter 33 of title 5, United States Code, is amended--
(1) in section 3304(a)--
(A) in paragraph (2) by striking the period and
inserting ``; and''; and
(B) by adding at the end the following paragraph:
``(3) authority for agencies to appoint, without regard to
the provisions of sections 3309 through 3318, candidates
directly to positions for which--
``(A) public notice has been given; and
``(B) the Office of Personnel Management has
determined that there exists a severe shortage of
candidates or there is a critical hiring need. The
Office shall prescribe, by regulation, criteria for
identifying such positions and may delegate authority
to make determinations under such criteria.'';
(2) by inserting after section 3318 the following new
section:
``Sec. 3319. Alternative ranking and selection procedures
``(a) Notwithstanding section 2302(b)(11) or any other provision of
this chapter--
``(1) the Office, in exercising its authority under section
3304; or
``(2) an agency to which the Office has delegated examining
authority under section 1104(a)(2)--
may establish category rating systems for evaluating job applicants for
positions in the competitive service, under which qualified candidates
are divided into two or more quality categories, consistent with
regulations prescribed by the Office of Personnel Management, rather
than assigned individual numerical ratings.
``(b) Within each quality category established under subsection
(a), preference-eligibles shall be listed ahead of individuals who are
not preference eligibles. For other than scientific and professional
positions at GS-9 (equivalent or higher), qualified preference-
eligibles who have a compensable service-connected disability of 10
percent or more shall be listed in the highest quality category.
``(c) An appointing official may select any applicant in the
highest quality category or, if fewer than three candidates have been
assigned to the highest quality category, in a merged category
consisting of the highest and the second highest quality categories.
Notwithstanding the preceding sentence, the appointing official may not
pass over a preference-eligible in the same category from which
selection is made, unless the requirements of section 3317(b) or
3318(b), as applicable, are satisfied.
``(d) The Office of Personnel Management may prescribe such
regulations as it considers necessary to carry out the provisions of
this section.''; and
(3) in the table of sections by amending the item relating
to section 3319 to read as follows:
``3319. Alternative ranking and selection procedures.''
TITLE II--BUDGETING AND MANAGING FOR RESULTS: FULL FUNDING FOR FEDERAL
RETIREE COSTS
Subtitle A--Accrual Funding of Pensions and Retirement Pay for Federal
Employees
SEC. 201. CIVIL SERVICE RETIREMENT SYSTEM.
(a) Civil Service Retirement and Disability Fund.--Chapter 83 of
title 5, United States Code, is amended--
(1) in section 8331--
(A) in paragraph (17)--
(i) by striking ``normal cost'' and
inserting ``normal cost percentage''; and
(ii) by inserting ``and standards (using
dynamic assumptions)'' after ``practice'';
(B) by amending paragraph (18) to read as follows:
``(18) `Fund balance' means the current net assets of the
Fund available for payment of benefits, as determined by the
Office in accordance with appropriate accounting standards, but
does not include any amount attributable to--
``(A) the Federal Employees' Retirement System; or
``(B) contributions made under the Federal
Employees' Retirement Contribution Temporary Adjustment
Act of 1983 by or on behalf of any individual who
became subject to the Federal Employees' Retirement
System;''
(C) by amending paragraph (19) to read as follows:
``(19) `accrued liability' means the estimated excess of
the present value of all benefits payable from the Fund to
employees and Members, and former employees and Members,
subject to this subchapter, and their survivors, over the
present value of deductions to be withheld from the future
basic pay of employees and Members currently subject to this
subchapter and of future agency contributions to be made in
their behalf;''
(D) in paragraph (27) by striking ``and'' at the
end;
(E) in paragraph (28) by striking the period at the
end and inserting a semicolon; and
(F) by adding at the end the following paragraphs:
``(29) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities of
a retirement system and in anticipating the effects of long-
term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation; and
``(30) `unfunded liability' means the estimated excess of--
``(A) the actuarial present value of all future
benefits payable from the Fund under this subchapter
based on the service of current or former employees or
Members, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the future basic
pay of employees and Members currently subject
to this chapter pursuant to section 8334;
``(ii) the actuarial present value of the
future contributions to be made pursuant to
section 8334 with respect to employees and
Members currently subject to this subchapter;
``(iii) the Fund balance, as defined in
paragraph (18), as of the date the unfunded
liability is determined; and
``(iv) any other appropriate amount, as
determined by the Office of Personnel
Management in accordance with generally
accepted actuarial practices and principles.'';
(2) in section 8334--
(A) in subsection (a)(1)--
(i) by striking the last two sentences;
(ii) by redesignating that subsection, as
so amended, as (a)(1)(A); and
(iii) by adding at the end the following
new subparagraphs:
``(B) Except as provided in subparagraph (E), each
employing agency having any employees or Members
subject to subparagraph (A) shall contribute from
amounts available for salaries and expenses an amount
equal to the sum of--
``(i) the product of--
``(I) the normal cost percentage,
as determined for employees (other than
employees covered by clause (ii)),
multiplied by
``(II) the aggregate amount of
basic pay payable by the agency, for
the period involved, to employees
(under subclause (I)) who are within
such agency; and
``(ii) the product of--
``(I) the normal cost percentage,
as determined for Members,
Congressional employees, law
enforcement officers, firefighters, air
traffic controllers, bankruptcy judges,
Court of Federal Claims judges, United
States magistrates, judges of the
United States Court of Appeals for the
Armed Forces, members of the Capitol
Police, nuclear materials couriers, and
members of the Supreme Court Police,
multiplied by
``(II) the aggregate amount of
basic pay payable by the agency for the
period involved, to employees and
Members (under subclause (I)) who are
within such agency.
``(C) In determining the normal cost percentage to
be applied under subparagraph (B), amounts provided for
under subparagraph (A) shall be taken into account.
``(D) Contributions under this paragraph shall be
paid--
``(i) in the case of law enforcement
officers, firefighters, air traffic
controllers, bankruptcy judges, Court of
Federal Claims judges, United States
magistrates, judges of the United States Court
of Appeals for the Armed Forces, members of the
Supreme Court Police, nuclear materials
couriers and other employees, from the
appropriations or fund used to pay such law
enforcement officers, firefighters, air traffic
controllers, bankruptcy judges, Court of
Federal Claims judges, United States
magistrates, judges of the United States Court
of Appeals for the Armed Forces, members of the
Supreme Court Police, nuclear materials
couriers and other employees, respectively;
``(ii) in the case of elected officials,
from an appropriation or fund available for
payment of other salaries of the same office or
establishment; and
``(iii) in the case of employees of the
legislative branch paid by the Clerk of the
House of Representatives, from the contingent
fund of the House.
``(E) In the case of the United States Postal
Service, the Metropolitan Washington Airports
Authority, and the government of the District of
Columbia an amount equal to that withheld under
subparagraph (A) shall be contributed from the
appropriation or fund used to pay the employee.''; and
(B) in subsection (k)--
(i) in paragraph (1)--
(I) in subparagraph (A) by striking
``the first sentence of subsection
(a)(1) of this section'' and inserting
``subsection (a)(1)(A)''; and
(II) by amending subparagraph (B)
to read as follows:
``(B) the amount of the contribution under
subsection (a)(1)(B) shall be the amount which would
have been contributed under such subsection if this
subsection had not been enacted.''; and
(ii) in paragraph (2)(C)(iii) by striking
``the first sentence of subsection (a)(1)'' and
inserting ``subsection (a)(1)(A)''; and
(3) in section 8348--
(A) by repealing subsection (f);
(B) by amending subsection (g) to read as follows:
``(g)(1)(A) Not later than June 30, 2002, the Office of the Actuary
shall determine the unfunded liability of the Fund, as of September 30,
2001, attributable to benefits payable under this chapter and make
recommendations regarding its liquidation. After considering such
recommendations, the Office shall establish an amortization schedule,
including a series of annual installments commencing September 30,
2002, which provides for the liquidation of such liability by September
30, 2041.
``(B) The Office shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2001, through the fiscal year ending September 30,
2036, and shall establish a new amortization schedule, including a
series of annual installments commencing on September 30 of the
subsequent fiscal year, which provides for the liquidation of such
liability by September 30, 2041.
``(C) The Office shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2036, and shall establish a new amortization
schedule, including a series of annual installments commencing on
September 30 of the subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(D) Amortization schedules established under this paragraph shall
be set in accordance with generally accepted actuarial practices and
principles, with interest computed at the rate used in the most recent
valuation of the Civil Service Retirement System.
``(2) At the end of each fiscal year, beginning on September 30,
2002, the Office shall notify the Secretary of the Treasury of the
amount of the first installment under the most recent amortization
schedule established under paragraph (1). Before closing the accounts
for the fiscal year, the Secretary shall credit that amount to the
Fund, as a Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated.
``(3) For the purpose of carrying out paragraph (1) with respect to
any fiscal year, the Office may--
``(A) require the Board of Actuaries of the Civil Service
Retirement System to make actuarial determinations and
valuations, make recommendations, and maintain records in
accordance with section 8347(f); and
``(B) use the latest actuarial determinations and
valuations made by such Board of Actuaries.'';
(C) in subsections (h), (i), and (m) by striking
``unfunded'' and inserting ``accrued'' each time it
appears; and
(D) by adding at the end the following new
subsection:
``(n) Under regulations prescribed by the Office, the head of an
agency may request reconsideration of any amount determined to be
payable with respect to such agency under section 8334(a)(1)(B)-(D).
Any such request shall be referred to the Board of Actuaries of the
Civil Service Retirement System. The Board of Actuaries shall review
the computations of the Office and may make any adjustment with respect
to any such amount which the Board determines appropriate. A
determination by the Board of Actuaries under this subsection shall be
final.''.
(b) Government Contributions.--Section 8423 of title 5, United
States Code, is amended--
(1) in subsection (a)(2) by striking ``section 8422'' and
inserting ``section 8422(a)''; and
(2) in subsection (b)(2) by striking ``equal annual
installments'' and inserting ``annual installments set in
accordance with generally accepted actuarial practices and
principles''.
SEC. 202. CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM.
The Central Intelligence Agency Retirement Act, Public Law 88-643,
(50 U.S.C. 2001 et seq.), 78 Stat. 1043, as amended, is further
amended--
(a) in section 101 (50 U.S.C. 2001)--
(1) by amending paragraph (5) to read as follows--
``(5) Unfunded liability.-- ``The term `unfunded liability'
means the estimated excess of--
``(A) the actuarial present value of all future
benefits payable from the Fund under title II of this
Act based on the service of current or former
participants, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the future basic
pay of a participants currently subject to
title II of this Act pursuant to section 211;
``(ii) the actuarial present value of the
future contributions to be made pursuant to
section 211 with respect to participants
currently subject to title II of this Act;
``(iii) the Fund balance, as defined in
paragraph (4), as of the date the unfunded
liability is determined; and
``(iv) any other appropriate amount, as
determined by the Director in accordance with
generally accepted actuarial practices and
principles.'';
(2) in paragraph (6)--
(A) by striking ```normal cost''' and inserting
```normal cost percentage'''; and
(B) by inserting ``and standards (using dynamic
assumptions)'' after ``practice''; and
(3) by adding at the end the following paragraph:
``(10) Dynamic assumptions.--``The term `dynamic
assumptions' means economic assumptions that are used in
determining actuarial costs and liabilities of a retirement
system and in anticipating the effects of long-term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(b) in section 202 (50 U.S.C. 2012) by adding at the end the
following: ``The Fund is appropriated for the payment of benefits as
provided by this title.'';
(c) by amending section 211(a)(2) (50 U.S.C. 2021) to read as
follows:
``(2) Agency contributions.--``The Agency shall contribute
to the Fund the amount computed in a manner similar to that
used under section 8334(a) of title 5, United States Code,
pursuant to determinations of the normal cost percentage of the
Central Intelligence Agency Retirement and Disability System by
the Director. Contributions under this paragraph shall be paid
from amounts available for salaries and expenses.''; and
(d) in section 261 (50 U.S.C. 2091)--
(1) by repealing subsection (c) and (d) and redesignating
subsection (e) as subsection (c);
(2) by amending subsection (c), as redesignated, to read as
follows:
``(c)(1) Not later than June 30, 2002, the Director shall cause to
be made actuarial valuations of the Fund that determine the unfunded
liability of the Fund, as of September 30, 2001, attributable to
benefits payable under this title and make recommendations regarding
its liquidation. After considering such recommendations, the Director
shall establish an amortization schedule, including a series of annual
installments commencing September 30, 2002, which provides for the
liquidation of such liability by September 30, 2041.
``(2) The Director shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2001, through the fiscal year ending September 30,
2036, and shall establish a new amortization schedule, including a
series of annual installments commencing on September 30 of the
subsequent fiscal year, which provides for the liquidation of such
liability by September 30, 2041.
``(3) The Director shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2036, and shall establish a new amortization
schedule, including a series of annual installments commencing on
September 30 of the subsequent fiscal year, which provides for the
liquidation of such liability over five years.
``(4) Amortization schedules established under this subsection
shall be set in accordance with generally accepted actuarial practices
and principles, with interest computed at the rate used in the most
recent valuation of the Civil Service Retirement and Disability
System.''; and
(3) by adding at the end the following new subsection:
``(d) At the end of each fiscal year, beginning on September 30,
2002, the Director shall notify the Secretary of the Treasury of the
amount of the first installment under the most recent amortization
schedule established under subsection (c). Before closing the accounts
for that fiscal year, the Secretary shall credit that amount to the
Fund, as a Government contribution, out of any money in the Treasury of
the United States not otherwise appropriated. For the purposes of
Section 504 of the National Security Act of 1947, this amount shall be
considered authorized.''.
(e) by adding at the end of the Central Intelligence Agency
Retirement Act (50 U.S.C. 2001 et seq.) the following new section 308:
Sec. 308. Full funding of Retiree Costs for Employees Designated under
Section 302
(a) In addition to other government contributions required by law,
the Agency shall contribute to the Civil Service Retirement and
Disability fund (hereinafter in this section referred to as the
``Fund'') amounts calculated in accordance with section 8423 of title
5, United States Code, based on the projected number of employees to be
designated pursuant to section 302 of this Act. In addition, the
Agency, in a manner similar to that established for employee
contributions to the Fund by section 8422 of title 5, United States
Code, will contribute an amount equal to the difference between that
which would be contributed by the number of employees projected to be
designated under section 302 and the amounts that are actually being
deducted and contributed from the basic pay of an equal number of
employees pursuant to section 8422. The amounts of the Agency's
contributions under this subsection shall be determined by the Director
of the Office of Personnel Management, in consultation with the
Director, and shall be paid by the Agency from funds available for
salaries and expenses. Agency employees designated pursuant to section
302 of this Act shall, commencing with such designation, have deducted
from their basic pay the full amount required by section 8422 of title
5, United States Code, and such deductions shall be contributed to the
Fund.
(b) (1) The Director of the Office of Personnel Management, in
consultation with the Director, shall determine the total amount of
unpaid contributions (government and employee contributions) and
interest attributable to the number of individuals employed with the
Agency on September 30, 2001, who are projected to be designated under
section 302 of this Act, but are not yet designated under that section
as of that date. The amount shall be referred to as the section 302
unfunded liability.
(2) Not later than June 30, 2002, the Director of the Office of
Personnel Management, in consultation with the Director, shall
establish an amortization schedule, setting forth a series of annual
installments commencing September 30, 2002, which provides for the
liquidation of the section 302 unfunded liability by September 30,
2011.
(3) At the end of each fiscal year, beginning on September 30,
2002, the Director shall notify the Secretary of the Treasury of the
amount of the annual installment under the amortization schedule
established under paragraph (2) of this subsection. Before closing the
accounts for that fiscal year, the Secretary shall credit that amount
to the Fund, out of any money in the Treasury of the United States not
otherwise appropriated.
(c) Amounts paid by the Agency pursuant to this section are deemed
to be specifically authorized by the Congress for the purposes of
section 504 of the National Security Act of 1947.
SEC. 203. FOREIGN SERVICE RETIREMENT AND DISABILITY SYSTEM.
Chapter 8 of Title I of the Foreign Service Act of 1980, Public Law
96-465, (22 U.S.C. 4041 et seq.) 94 Stat. 2071, as amended, is further
amended--
(a) in section 804 (22 U.S.C. 4044)--
(1) by amending paragraph (5) to read as follows:
``(5) `normal cost percentage' means the entry-age normal
cost computed in accordance with generally accepted actuarial
practice and standards (using dynamic assumptions) and
expressed as a level percentage of aggregate basic pay;'';
(2) by amending paragraph (14) to read as follows:
``(14) `unfunded liability' means the estimated excess of--
``(A) the actuarial present value of all future
benefits payable from the Fund under this part based on
the service of current or former participants, over
``(B) the sum of--
``(i) the actuarial present value of
deductions to be withheld from the future basic
pay of participants currently subject to this
part pursuant to section 805;
``(ii) the actuarial present value of the
future contributions to be made pursuant to
section 805 with respect to participants
currently subject to this part;
``(iii) the Fund balance, as defined in
paragraph (7), as of the date the unfunded
liability is determined, excluding any amount
attributable to the Foreign Service Pension
System, or contributions made under the Federal
Employees' Retirement Contribution Temporary
Adjustment Act of 1983 by or on behalf of any
individual who became subject to the Foreign
Service Pension System; and
``(iv) any other appropriate amount, as
determined by the Secretary of the Treasury in
accordance with generally accepted actuarial
practices and principles.''; and
(3) by adding at the end the following new paragraph:
``(15) `dynamic assumptions' means economic assumptions
that are used in determining actuarial costs and liabilities of
a retirement system and in anticipating the effects of long-
term future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(b) in section 852 (22 U.S.C. 4071a)--
(1) in paragraph (4)--
(A) by striking ``normal cost'' and inserting
``normal cost percentage''; and
(B) by striking ``by the Secretary of State'';
(2) in paragraph (7)--
(A) by striking ``supplemental'' and inserting
``unfunded'';
(B) in subparagraph (B)(i) by striking ``(I)'' and
``and (II) contributions for past civilian and military
service''; and
(C) in subparagraph (B)(ii) by inserting before the
semicolon ``with respect to participants currently
subject to this part''; and
(3) by adding at the end the following new paragraph:
``(9) `dynamic assumptions' means economic assumptions that
are used in determining actuarial costs and liabilities of a
retirement system and in anticipating the effects of long-term
future--
``(A) investment yields;
``(B) increases in rates of basic pay; and
``(C) rates of price inflation.'';
(c) in section 805(a)(1) (22 U.S.C. 4045(a)(i))--
(1) by striking the second sentence;
(2) (by redesignating that subsection, as so amended, as
(a)(1)(A);
(3) by redesignating the last sentence of that subsection,
as so amended as (a)(1)(C);
(4) by inserting after subparagraph (A) the following new
subparagraph:
``(B) Each employing agency having participants
shall contribute to the Fund the amount computed in a
manner similar to that used under section 8334(a) of
title 5, United States Code, pursuant to determinations
of the normal cost percentage of the Foreign Service
Retirement and Disability System. Contributions under
this subparagraph shall be paid from the appropriations
or fund used for payment of the salary of the
participant.'';
(5) in subsection (a)(2)(A) by striking ``An equal amount
shall be contributed by the Department'' and inserting in its
place ``Each employing agency having participants shall
contribute to the Fund the amount computed in a manner similar
to that used under section 8334(a) of title 5, United States
Code, pursuant to determinations of the normal cost percentage
of the Foreign Service Retirement and Disability System''; and
(6) in subsection (a)(2)(B) by striking ``An equal amount
shall be contributed by the Department'' and inserting in its
place ``Each employing agency having participants shall
contribute to the Fund from amounts available for salaries and
expenses the amount computed in a manner similar to that used
under section 8334(a) of title 5, United States Code, pursuant
to determinations of the normal cost percentage of the Foreign
Service Retirement and Disability System'';
(d) by repealing sections 821 and 822 (22 U.S.C. 4061 and 4062) and
by adding the following new section:
Sec. 821. Unfunded liability.
``(a)(1) Not later than June 30, 2002, the Secretary of State shall
cause to be made actuarial valuations of the Fund that determine the
unfunded liability of the Fund, as of September 30, 2001, attributable
to benefits payable under this subchapter and make recommendations
regarding its liquidation. After considering such recommendations, the
Secretary of State shall establish an amortization schedule, including
a series of annual installments commencing September 30, 2002, which
provides for the liquidation of such liability by September 30, 2041.
``(2) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year, for each
fiscal year beginning after September 30, 2001, through the fiscal year
ending September 30, 2036, and shall establish a new amortization
schedule, including a series of annual installments commencing on
September 30 of the subsequent fiscal year, which provides for the
liquidation of such liability by September 30, 2041.
``(3) The Secretary of State shall redetermine the unfunded
liability of the Fund as of the close of the fiscal year for each
fiscal year beginning after September 30, 2036, and shall establish a
new amortization schedule, including a series of annual installments
commencing on September 30 of the subsequent fiscal year, which
provides for the liquidation of such liability over five years.
``(4) Amortization schedules established under this subsection
shall be set in accordance with generally accepted actuarial practices
and principles, with interest computed at the rate used in the most
recent valuation of the Foreign Service Retirement and Disability
System.
``(b) At the end of each fiscal year, beginning on September 30,
2002,
the Secretary of State shall notify the Secretary of the Treasury of
the amount of the first installment under the most recent amortization
schedule established under paragraph (1). Before closing the accounts
for that fiscal year, the Secretary of the Treasury shall credit that
amount to the Fund, as a Government contribution, out of any money in
the Treasury of the United States not otherwise appropriated.'';
(e) in section 857 (22 U.S.C. 4071f(b)(1)) by striking ``equal
annual installments'' and inserting ``annual installments set in
accordance with generally accepted actuarial practices and
principles'';
(f) in section 859 (22 U.S.C. 4071h(b)(1)) by adding ``percentage''
after ``normal cost'';
(g) in section 802 (22 U.S.C. 4042) by adding at the end the
following: ``The Fund is appropriated for the payment of benefits as
provided by this subchapter.''; and
(h) in section 818 (22 U.S.C. 4058) by striking ``System'' and
inserting ``Systems under this subchapter''.
SEC. 204. PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM.
Title II of the Public Health Service Act (42 U.S.C. 202 et seq.)
is amended by adding at the end the following new part:
``PART C--PUBLIC HEALTH SERVICE COMMISSIONED CORPS RETIREMENT SYSTEM
``ESTABLISHMENT AND PURPOSE OF FUND
``Sec. 251. There is established on the books of the Treasury a
fund to be known as the Public Health Service Commissioned Corps
Retirement Fund (hereinafter in this part referred to as the `Fund'),
which shall be administered by the Secretary of Health and Human
Services (hereinafter in this part referred to as the `Secretary'). The
Fund shall be used for the accumulation of funds in order to finance on
an actuarially sound basis liabilities of the Department of Health and
Human Services for benefits payable on account of retirement,
disability, or death to commissioned officers of the Public Health
Service and to their survivors pursuant to part A of this title.
``assets of the fund
``Sec. 252. There shall be deposited into the Fund the following,
which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 255.
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
257(d) of the Public Health Service Commissioned Corps
Retirement Funding Reform Act of 2001.
``payment from the fund
``Sec. 253. There shall be paid from the Fund benefits payable on
account of retirement, disability, or death to commissioned officers of
the Public Health Service and to their survivors pursuant to part A of
this title.
``determination of contributions to the fund
``Sec. 254. (a)(1) Not later than June 30, 2002, the Secretary
shall determine the unfunded liability of the Fund attributable to
service performed as of September 30, 2001, which is `active service'
for the purpose of section 212. The Secretary shall establish an
amortization schedule, including a series of annual installments
commencing September 30, 2002, which provides for the liquidation of
such liability by September 30, 2041.
``(2) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2001, through the fiscal year ending September 30,
2036, and shall establish a new amortization schedule, including a
series of annual installments commencing on September 30 of the
subsequent fiscal year, which provides for the liquidation of such
liability by September 30, 2041.
``(3) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2036, and shall establish a new amortization
schedule, including a series of annual installments commencing on
September 30 of the subsequent fiscal year, which provides for the
liquidation of such liability over 5 years.
``(b) The Secretary shall determine each fiscal year, in sufficient
time for inclusion in the budget request for the following fiscal year,
the total amount of Department of Health and Human Services
contributions to be made to the Fund during the fiscal year under
section 255(a). That amount shall be the sum of--
``(1) the product of--
``(A) the current estimate of the value of the
single level percentage of basic pay to be determined
under subsection (c)(1) at the time of the most recent
actuarial valuation under subsection (c); and
``(B) the total amount of basic pay expected to be
paid during that fiscal year to commissioned officers
of the Public Health Service on active duty (other than
active duty for training); and
``(2) the product of--
``(A) the current estimate of the value of the
single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) to be determined under subsection
(c)(2) at the time of the most recent actuarial
valuation under subsection (c); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) expected to be paid during the
fiscal year to commissioned officers of the Reserve
Corps of the Public Health Service (other than officers
on full-time duty other than for training) who are not
otherwise described in subparagraph (A).
``(c) Not less often than every four years thereafter (or by the
fiscal year end prior to the effective date of any statutory change
affecting benefits payable on account of retirement, disability, or
death to commissioned officers or their survivors), the Secretary shall
carry out an actuarial valuation of benefits payable on account of
retirement, disability, or death to commissioned officers of the Public
Health Service and to their survivors pursuant to part A of this title.
Each such actuarial valuation shall be signed by an enrolled Actuary
and shall include--
``(1) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay for
commissioned officers of the Public Health Service on active
duty (other than active duty for training); and
``(2) a determination (using the aggregate entry-age normal
cost method) of a single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37, United
States Code) of commissioned officers of the Reserve Corps of
the Public Health Service (other than officers on full time
duty other than for training) who are not otherwise described
by subparagraph (1).
``(d) All determinations under this section shall be in accordance
with generally accepted actuarial principles and practices and, where
appropriate, shall follow the general pattern of methods and
assumptions approved by the Department of Defense Retirement Board of
Actuaries.
``(e) The Secretary shall provide for the keeping of such records
as are necessary for determining the actuarial status of the Fund.
``payments into the fund
``Sec. 255. (a) From amounts available to the Department of Health
and Human Services for salaries and expenses, the Secretary shall pay
into the Fund at the end of each month the amount that is the sum of--
``(1) the product of--
``(A) the level percentage of basic pay determined
using all the methods and assumptions approved for the
most recent (as of the first day of the current fiscal
year) actuarial valuation under sections 254(c)(1)
(except that any statutory change affecting benefits
payable on account of retirement, disability, or death
to commissioned officers or their survivors that is
effective after the date of that valuation and on or
before the first day of the current fiscal year shall
be used in such determination); and
``(B) the total amount of basic pay accrued for
that month by commissioned officers of the Public
Health Service on active duty (other than active duty
for training); and
``(2) the product of--
``(A) the level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) determined using all the methods
and assumptions approved for the most recent (as of the
first day of the current fiscal year) actuarial
valuation under section 254(c)(2) (except that any
statutory change affecting benefits payable on account
of retirement, disability, or death to commissioned
officers or their survivors that is effective after the
date of that valuation and on or before the first day
of the current fiscal year shall be used in such
determinations); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) accrued for that month by
commissioned officers of the Reserve Corps of the
Public Health Service (other than officers on full-time
duty other than for training).
``(b) At the end of each fiscal year, beginning on September 30,
2002, the Secretary shall certify to the Secretary of the Treasury the
amount of the first installment under the most recent amortization
schedule established under section 254(a). Before closing the accounts
for that fiscal year, the Secretary of the Treasury shall pay into the
Fund from the General Fund of the Treasury the amount so certified.
Such payment shall be the contribution to the Fund for the fiscal year
beginning on the following day;
``investments of assets of fund
``Sec. 256. The Secretary may request the Secretary of the Treasury
to invest such portion of the Fund as is not, in the judgment of the
Secretary, required to meet the current needs of the Fund. Such
investments shall be made by the Secretary of the Treasury in public
debt securities with maturities suitable to the needs of the Fund, as
determined by the Secretary, and bearing interest at rates determined
by the Secretary of the Treasury, taking into consideration current
market yields on outstanding marketable obligations of the United
States of comparable maturities. The income on such investments shall
be credited to and form a part of the Fund.
``implementation year exceptions
``Sec. 257. (a) To avoid funding shortfalls in the first year
should formal actuarial determinations not be available in time for
budget preparation, the amounts used in the first year in sections
255(a)(1)(A) and 255(a)(2)(A) shall be set equal to those estimates in
sections 254(b)(1)(A) and 254(b)(2)(A) if final determinations are not
available. The original unfunded liability as defined in section 254(a)
shall include an adjustment to correct for this difference between the
formal actuarial determinations and the estimates in sections
254(b)(1)(A) and 254(b)(2)(A).''.
(b) Conforming Amendments.--
(1) Condition of detail.--Section 214 of the Public Health
Service Act (42 U.S.C. 215) is amended by adding at the end the
following new subsection:
``(e) The Secretary shall condition any detail under subsection
(a), (b), or (c) upon the agreement of the executive department, State,
subdivision, Committee of the Congress, or institution concerned to pay
to the Department of Health and Human Services, in advance or by way of
reimbursement, for the full cost of the detail including that portion
of the contributions under section 255(a) that is attributable to the
detailed personnel.''.
(2) Exemption from sequestration.--Section 255(g)(1)(B) of
the Balanced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 905(g)(1)(B)) is amended--
(A) by inserting after the item relating to the
``Pensions for former Presidents'' the following item:
``Public Health Service Commissioned Corps Retirement
Fund (75-8274-0-7-602);'', and sec. 255(g)(1)(A) of the
Balanced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 905(g)(1)(A)) is amended--
(B) by inserting after the item relating to ``payment to
the foreign service retirement and disability fund'' the
following item: ``Payment to the Public Health Service
Commissioned Corps Retirement Fund (75-0380-0-1-551);''.
(c) Transfer of Appropriations.--There shall be transferred into
the Fund on October 1, 2002, any obligated or unobligated balances of
appropriations made to the Department of Health and Human Services that
are currently available for benefits payable on account of retirement,
disability, or death to commissioned officers of the Public Health
Service and to their survivors pursuant to part A of title II of the
Public Health Service Act, and amounts so transferred shall be part of
the assets of the Fund.
SEC. 205. NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION COMMISSIONED
OFFICER CORPS RETIREMENT SYSTEM.
Title 33, United States Code, is amended by inserting after section
853g the following new section 853g-1:
``(a)(1) Establishment and Purpose of the NOAA Commissioned Officer
Corps Retirement Fund.--There is established on the books of the
Treasury a fund to be known as the National Oceanic and Atmospheric
Administration Commissioned Officer Corps Retirement Fund (hereinafter
in this section referred to as the `Fund'), which shall be administered
by the Secretary of Commerce (hereinafter in this section referred to
as `the Secretary'). The Fund shall be used for the accumulation of
funds in order to finance on an actuarially sound basis liabilities of
the Department of Commerce under military retirement and survivor
benefit programs for the commissioned officers corps of the National
Oceanic and Atmospheric Administration (hereinafter referred to as
`NOAA').
``(2) The term `military retirement and survivor benefit program'
means--
``(A) the provisions of this title and title 10 creating
entitlement to, or determining, the amount of retired pay;
``(B) the programs under the jurisdiction of the Department
of Defense providing annuities for survivors and members and
former members of the armed forces, including chapter 73 of
title 10, section 4 of Public Law No. 92-425, and section 5 of
Public Law No. 96-202, as made applicable to the NOAA
Commissioned Officer Corps by section 857a of title 33, United
States Code.
``(b) Assets of the Fund.--There shall be deposited into the Fund
the following, which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 105.
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund pursuant to section
108(c) of this Act.
``(c) Payment From the Fund.--There shall be paid from the Fund
benefits payable on account of military retirement and survivor benefit
programs to commissioned officers of the NOAA Commissioned Officer
Corps and their survivors.
``(d)(1)(A) Determination of Contributions to the Fund. Not later
than June 30, 2002, the Secretary shall determine the unfunded
liability of the Fund attributable to service performed as of September
30, 2001, which is `active service' for the purpose of section 212. The
Secretary shall establish an amortization schedule, including a series
of annual installments commencing September 30, 2002, which provides
for the liquidation of such liability by September 30, 2041.
``(B) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year, for each fiscal year beginning
after September 30, 2001, through the fiscal year ending September 30,
2036, and shall establish a new amortization schedule, including a
series of annual installments commencing on September 30 of the
subsequent fiscal year, which provides for the liquidation of such
liability by September 30, 2041.
``(C) The Secretary shall redetermine the unfunded liability of the
Fund as of the close of the fiscal year for each fiscal year beginning
after September 30, 2036, and shall establish a new authorization
schedule, including series of annual installments commencing on
September 30 of the subsequent fiscal year, which provides for the
liquidation of such liability over 5 years.
``(2) The Secretary shall determine each fiscal year, in sufficient
time for inclusion in the budget request for the following fiscal year,
the total amount of Department of Commerce contributions to be made to
the Fund during that fiscal year under (e)(a). The amount shall be the
product of--
``(A) the current estimate of the value of the single level
percentage of basic pay to be determined under subsection (b)
at the time of the most recent actuarial valuation under
subsection (b); and
``(B) the total amount of basic pay expected to be paid
during that fiscal year to commissioned officers of NOAA on
active duty.
``(3) Not less often then every four years (or by the fiscal year
end prior to the effective date of any statutory change affecting
benefits payable on account of retirement, disability, or death to
commissioned officers or their survivors), the Secretary shall carry
out an actuarial valuation of benefits payable on account of military
retirement and survivor benefit programs to commissioned officers of
the NOAA Commissioned Officer Corps and to their survivors. Each such
actuarial valuation shall be signed by an enrolled Actuary and shall
include a determination (using the aggregate entry-age normal cost
method) of a single level percentage of basic pay for commissioned
officers of NOAA on active duty.
``(4) All determinations under this section shall be in accordance
with generally accepted actuarial principles and practices, and, where
appropriate, shall follow the general pattern of methods and
assumptions approved by the Department of Defense Retirement Board of
Actuaries.
``(5) The Secretary shall provide for the keeping of such records
as are necessary for determining the actuarial status of the Fund.
``(e)(1) Payments into the fund.--From amounts appropriated to the
National Oceanic Atmospheric Administration for salaries and expenses,
the Secretary shall pay into the Fund at the end of each month the
amount that is the product of--
``(A) the level percentage of basic pay determined using
all the methods and assumptions approved for the most recent
(as of the first day of the current fiscal year) actuarial
valuation under section 5(c)(1) (except that any statutory
change affecting benefits payable on account of military
retirement and survivor benefit programs to commissioned
officers of the NOAA Commissioned Officer Corps and to their
survivors that is effective date after the date of that
valuation and on or before the first day of the current fiscal
year shall be used in such determination); and
``(B) the total amount of basic pay accrued for that month
by commissioned officers of NOAA on active duty.
``(2)(A) At the beginning of each fiscal year, the Secretary shall
determine the sum of--
``(i) the amount of the payment for that year under the
amortization of the original unfunded liability of the Fund;
``(ii) the amount (including any negative amount) for that
year under the most recent amortization schedule determined by
the Secretary for the amortization of any cumulative actuarial
gain or loss to the Fund, resulting from changes in benefits;
and
``(iii) the amount (including any negative amount) for that
year under the most recent amortization schedule determined by
the Secretary for the amortization or any cumulative actuarial
gain or loss to the Fund resulting from changes in actuarial
assumptions and from experience different from the assumed
since the last valuation. The Secretary shall promptly certify
the amount of the sum to the Secretary of the Treasury.
``(B) Upon receiving the certification pursuance to paragraph (1),
the Secretary of Treasury shall promptly pay into the Fund from the
General Fund of the Treasury the amount so certified. Such payment
shall be the contribution to the Fund for the fiscal year.
``(f) Investment of Assets of the Fund.--The Secretary may request
the Secretary of the Treasury to invest such portion of the Fund as is
not, in the judgment of the Secretary, required to meet the current
needs of the Fund. Such investments shall be made by the Secretary of
the Treasury in public debt securities with maturities suitable to the
needs of the Fund, as determined by the Secretary, and bearing interest
at rates determined by the Secretary of the Treasury, taking into
consideration current market yields on outstanding marketable
obligations of the United States of comparable maturities. The income
of such investments shall be credited to and form a part of the Fund.
``(g)(1) Implementation year exceptions.--To avoid funding
shortfalls in the first year should formal actuarial determinations not
be available in time for budget preparation, the amounts used in the
first year in section 105(a)(1) shall be set equal to the estimate in
section 104(b)(1) if final determinations are not available. The
original unfunded liability as determined in section 104(a) shall
include an adjustment to correct for this difference between the formal
actuarial determinations and the estimates in section 104(b)(1).
``(2) Exemption from sequestration.--Section 255(g)(1)(B) of the
Balanced Budget and Emergency Deficit Control Act of 1985, as amended,
(2 U.S.C. 905(g)(1)(B)) is further amended by striking `National
Oceanic and Atmospheric Administration retirement (13-1450-0-1-306);',
and inserting in lieu there of: the following item: `National Oceanic
and Atmospheric Administration Commissioned Officer Corps Retirement
Fund;';
``(3) Transfer of appropriations.--Any obligated and unobligated
balance of appropriations made to the Department of Commerce that are
currently available for benefits payable on account of military
retirement and survivor benefit programs to commissioned officers of
the NOAA Commissioned Officer Corps and to their survivors, and amounts
so transferred shall be part of the assets of the Fund, effective
October 1, 2002.
``(4) Effective date.--Subsection (c) (relating to payments from
the Fund) and (e) (relating to payments into the Fund) of this section,
shall take effect on October 1, 2002.''.
SEC. 206. COAST GUARD MILITARY RETIREMENT SYSTEM.
(a) Title 14, United States Code, is amended by inserting after
chapter 13, the following new chapter:
``CHAPTER 14--COAST GUARD MILITARY RETIREMENT FUND
``Sec.
``561. Establishment and purpose of Fund; definition.
``562. Assets of Fund.
``563. Payments for the Fund.
``564. Determinations of contributions to the Fund.
``565. Payments into the Fund.
``566. Investment of assets of Fund.
``567. Implementation year exceptions.
``Sec. 561. Establishment and purpose of Fund; definition
``(a) There is established on the books of the Treasury a fund to
be known as the Coast Guard Military Retirement Fund (hereinafter in
this chapter referred to as the `Fund'), which shall be administered by
the Secretary of the Department of Transportation. The Fund shall be
used for the accumulation of funds in order to finance on an
actuarially sound basis liabilities of the Coast Guard under military
retirement and survivor benefit programs.
``(b) In this chapter, `military retirement and survivor benefit
programs' means--
``(1) the provisions of this title and title 10, United
States Code, creating entitlement to, or determining, the
amount of retired pay;
``(2) the programs providing annuities for survivors of
members and former members of the armed forces, including
chapter 73 of title 10, section 4 of Public Law 92-425, and
section 5 of Public Law 96-402; and
``(3) the authority provided in section 1048(h) of title
10.
``(c) In this chapter, reference to `the Secretary' shall mean the
Secretary of Transportation when the Coast Guard is not operating as a
service in the Navy. When the Coast Guard is operating as a service in
the Navy, `the Secretary' shall refer to the Secretary of Defense.
``Sec. 562. Assets of the Fund
``There shall be deposited into the Fund the following, which shall
constitute the assets of the Fund:
``(1) Amounts paid into the Fund under section 565 of this
title.
``(2) Any return on investment of the assets of the Fund.
``(3) Amounts transferred into the Fund.
``Sec. 563. Payment from the Fund
``(a) There shall be paid from the Fund--
``(1) retired pay payable to persons on the retired list of
the Coast Guard;
``(2) retired pay payable under chapter 67 of title 10, to
former members of the Coast Guard and the former United States
Lighthouse Service;
``(3) benefits payable under programs that provide
annuities for survivors of members and former members of the
armed forces, including chapter 73 of title 10, section 4 of
Public Law 92-425, and section 5 of Public Law 96-402; and
``(4) amounts payable under section 108(h) of title 10.
``(b) The assets of the Fund are hereby made available for payments
under subsection (a).
``Sec. 564. Determination of contributions to the Fund
``(a) The Secretary shall determine the amount that is the present
value (as of October 1, 2001) of future benefits payable from the Fund
that are attributable to service in the Coast Guard and the former
United States Lighthouse Service preformed as of September 30, 2001.
That amount is the original unfunded liability of the Fund. The
Secretary shall determine by June 30, 2002, an amortization schedule
for the liquidation of such liability over the period ending September
30, 2041, with the first payment commencing on September 30, 2002.
Contributions to the Fund for the liquidation of the original unfunded
liability in accordance with such schedule shall be made as provided in
section 565(b) of this title.
``(b) The Secretary shall determine each fiscal year, in sufficient
time for inclusion in the budget request for the following fiscal year,
the total amount of Department of Transportation, or Department of
Defense, contributions to be made to the Fund during that fiscal year
under section 565(a) of this title. That amount shall be the sum of the
following:
``(1) the product of--
``(A) the current estimate of the value of the
single level percentage of basic pay to be determined
under subsection (c)(1)(A) at the time of the most
recent actuarial valuation under subsection (c); and
``(B) the total amount of basic pay expected to be
paid during that fiscal year to members of the Coast
Guard on active duty (other than active duty for
training); and
``(2) the product of--
``(A) the current estimate of the value of the
single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) to be determined under subsection
(c)(1)(B) at the time of the most recent actuarial
valuation under subsection (c); and
``(B) the total amount of basic pay and
compensation (paid pursuant to section 206 of title 37)
expected to be paid during that fiscal year to members
of the Coast Guard Ready Reserve (other than members of
full-time Reserve duty other than for training) who are
not otherwise described in subparagraph (1)(B).
``(c)(1) Not less often than every four years (or prior to the
effective date of any statutory change affecting benefits payable on
account of retirement, disability, or death to commissioned officers or
their survivors), the Secretary shall carry out an actuarial valuation
of the Coast Guard military retirement and survivor benefit programs.
Each actuarial valuation of such programs shall be signed by an
enrolled Actuary and shall include--
``(A) a determination (using the aggregate entry-age normal
cost method) of single level percentage of basic pay for
members of the Coast Guard on active duty (other than active
duty for training); and
``(B) a determination (using the aggregate entry-age normal
cost method) of single level percentage of basic pay and of
compensation (paid pursuant to section 206 of title 37) for
members of the Ready Reserve of the Coast Guard (other than
members on full-time Reserve duty other than for training) who
are not otherwise described in subparagraph (1)(B). Such single
level percentages shall be used for the purpose of subsection
(b) and section 565(a) of this title.
``(2) If at the time of any such valuation the Secretary determines
that, based upon changes in benefits since the last such valuation,
there has been an actuarial gain or loss to the Fund, the Secretary
shall determine an amortization method and schedule for the
amortization of the cumulative gain or loss to the Fund created by such
change in benefits and any previous such changes in benefits through a
decrease or an increase in the payment that would otherwise be made to
the Fund.
``(3) If at the time of any such valuation the Secretary determines
that, based upon changes in actuarial assumptions and upon experience
different from that assumed since the last valuation, there has been an
actuarial gain or loss to the Fund, the Secretary shall determine an
amortization method and schedule for the amortization of the cumulative
gain or loss to the Fund created by such change in actuarial
assumptions and any previous such changes in assumptions through an
increase or decrease in the payments that would otherwise be made to
the Fund.
``(4) Contributions to the Fund in accordance with amortization
schedules under paragraphs (2) and (3) shall be made as provided in
section 565(b) of this title.
``(d) All determinations under this section shall be in accordance
with generally accepted actuarial principles and practices and, where
appropriate, shall follow the general pattern of methods and
assumptions approved by the Department of Defense Retirement Board of
Actuaries.
``(e) The Secretary shall provide for the keeping of such records
as are necessary for determining the actuarial status of the Fund.
``Sec. 565. Payments into the Fund
``(a) From amounts appropriated to the Coast Guard for salaries and
expenses, the Secretary shall pay into the Fund at the end of each
month as the Department of Transportation, or Department of Defense,
contribution to the Fund for that month the amount that is the sum of
the following:
``(1) the product of--
``(A) the level percentage of basic pay determined
using all the methods and assumptions approved for the
most recent (as of the first day of the current fiscal
year) actuarial valuation under section 564(c)(1)(A) of
this title (except that any statutory changes in the
military retirement and survivor benefit systems that
is effective after the date of that valuation and on or
before the first day of the current fiscal year shall
be used in such determination); and
``(B) the total amount of basic pay accrued for
that month by members of the Coast Guard on active duty
(other than active duty for training); and
``(2) the product of--
``(A) the level percentage of basic pay and of
compensation (accrued pursuant to section 206 of title
37) determined using all the methods and assumptions
approved for the most recent (as of the first day of
the current fiscal year) actuarial valuation under
section 564(c)(1)(B) of this title (except that any
statutory change in the military retirement and
survivor benefit systems that is effective after the
date of that valuation and on or before the first day
of the current fiscal year shall be used in such
determination); and
``(B) the total amount of basic pay and of
compensation (paid pursuant to section 206 of title 37,
United States Code) accrued for that month by members
of the Ready Reserve (other than members of full-time
Reserve duty other than for training) who are not
otherwise described in paragraph (1)(B).
``(b)(1) At the beginning of each fiscal year the Secretary of the
Treasury shall promptly pay into the Fund from the General Fund of the
Treasury the amount certified to the Secretary of the Treasury by the
Secretary under paragraph (3). Such payment shall be the contribution
to the Fund for that fiscal year required by sections 564(a) and 564(c)
(2) and (3) of this title.
``(2) At the beginning of each fiscal year the Secretary shall
determine the sum of the following:
``(A) The amount of the payment for that year under the
amortization schedule determined under section 564(a) of this
title for the amortization of the original unfunded liability
of the Fund;
``(B) The amount (including any negative amount) for that
year under the most recent amortization schedule determined by
the Secretary under section 564(c)(2) of this title for the
amortization of any cumulative actuarial gain or loss to the
Fund, resulting from changes in benefits; and
``(C) The amount (including any negative amount) for that
year under the most recent amortization schedule determined by
the Secretary under section 564(c)(3) of this title for the
amortization of any cumulative actuarial gain or loss to the
Fund, resulting from changes in actuarial assumptions and from
experience different from that assumed since the last
valuation.
``(3) The Secretary shall promptly certify the amount determined
under paragraph (2) each year to the Secretary of the Treasury.
``Sec. 566. Investment of assets of Fund
``The Secretary may request the Secretary of the Treasury to invest
such portion of the Fund as is not, in the judgment of the Secretary,
required to meet the current needs of the Fund. Such investments shall
be made by the Secretary of the Treasury in public debt securities with
maturities suitable to the needs of the Fund, as determined by the
Secretary, and bearing interest at rates determined by the Secretary of
the Treasury, taking into consideration current market yields on
outstanding marketable obligations of the United States of comparable
maturities. The income on such investments shall be credited to and
form a part of the Fund.
``Sec. 567. Implementation Year Exceptions
``To avoid funding shortfalls in the first year should formal
actuarial determinations not be available in time for budget
preparation, the amounts used in the first year in sections
565(a)(1)(A) and 565(a)(2)(A) shall be set equal to those estimates in
sections 564(b)(1)(A) and 564(b)(2)(A) if final determinations are not
available. The original unfunded liability as defined in section 564(a)
shall include an adjustment to correct for this difference between the
formal actuarial determinations and the estimates in sections
564(b)(1)(A) and 254(b)(2)(A).''.
(b) The table of chapters at the beginning of part I, of title 14,
as added by section 566, are amended by inserting after the item
relating to chapter 13 the following new item:
``14. Coast Guard Military Retirement Fund............. 561''.
(c) Section 255(g)(1)(B) of the Balanced Budget and Emergency
Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(B)) is amended by
striking ``Retired Pay, Coast Guard (69-0241-0-1-403)'' and inserting
``Coast Guard Military Retirement Fund (69-0241-01-403)''.
(d) There shall be transferred into the Fund on October 1, 2002,
any obligated and unobligated balances of appropriations made to the
Department of Transportation that are currently available for retired
pay, and amounts so transferred shall be part of the assets of the
Fund.
(e) Sections 563 (relating to payments from the Fund) and 565
(relating to payments into the Fund) of title 14, United States Code,
shall take effect on October 1, 2002.
Subtitle B--Accrual Funding of Post-Retirement Health Benefits Costs
for Federal Employees
SEC. 211. FEDERAL EMPLOYEES HEALTH BENEFITS FUND.
(a) Section 8906 of title 5, United States Code, is amended--
(1) by redesignating subsection (c) as paragraph (c)(1) and
by adding at the end the following new paragraphs:
``(2) In addition to Government contributions required by
subsection (b) and paragraph (1), each employing agency shall
contribute amounts as determined by the Office to be necessary
to prefund the accruing actuarial cost of post-retirement
health benefits for each of the agency's current employees who
are eligible for Government contributions under this section.
Amounts under this paragraph shall be paid by the employing
agency separate from other contributions under this section,
from the appropriations or fund used for payment of the salary
of the employee, on a schedule to be determined by the Office.
``(3) Paragraph (2) shall not apply to the United States
Postal Service or the Government of the District of
Columbia.''; and
(2) by amending paragraph 1 of subsection (g) to read:
``(1) Except as provided in paragraphs (2) and (3), all government
contributions authorized by this section for health benefits for an
annuitant shall be paid from the Employees Health Benefits Fund to the
extent that funds are available in accordance with section 8909(j)(6)
and, if necessary, from annual appropriations which are authorized to
be made for that purpose and which may be made available until
expended.''.
(b) Section 8909 of title 5, United States Code, is amended by
adding at the end the following new subsection:
``(j)(1) Not later than June 30, 2002, the Office shall determine
the existing liability of the Fund for post-retirement health benefits,
excluding the liability of the United States Postal Service for service
under section 8906(g)(2), under this chapter as of September 30, 2001.
The Office shall establish an amortization schedule, including a series
of annual installments commencing September 30, 2002, which provides
for the liquidation of such liability by September 30, 2041.
``(2) At the close of each fiscal year, for fiscal years beginning
after September 30, 2001, the Office shall determine the supplemental
liability of the Fund for post-retirement health benefits, excluding
the liability attributable to the United States Postal Service for
service subject to section 8906(g)(2), and shall establish an
amortization schedule, including a series of annual installments
commencing on September 30 of the subsequent fiscal year, which
provides for liquidation of such supplemental liability over 30 years.
``(3) Amortization schedules established under this paragraph shall
be set in accordance with generally accepted actuarial practices and
principles.
``(4) At the end of each fiscal year on and after September 30,
2002, the Office shall notify the Secretary of the Treasury of the
amounts of the next installments under the most recent amortization
schedules established under paragraphs (1) and (2). Before closing the
accounts for the fiscal year, the Secretary shall credit the sum of
these amounts (including in that sum any negative amount for the
amortization of the supplemental liability) to the Fund, as a
Government contribution, out of any money in the Treasury of the Untied
States not otherwise appropriated.
``(5) For the purpose of carrying out paragraphs (1) and (2), the
Office shall perform or arrange for actuarial determinations and
valuations and shall prescribe retention of such records as it
considers necessary for making periodic actuarial valuations of the
Fund.
``(6) Notwithstanding subsection (b), the amounts deposited into
the Fund pursuant to this subsection and section 8906(c)(2) to prefund
post-retirement health benefits costs shall be segregated within the
Fund so that such amounts, as well as earnings and proceeds under
paragraph (c) attributable to them, may be used exclusively for the
purpose of paying Government contributions for post-retirement health
benefits costs. When such amounts are used in combination with amounts
withheld from annuitants to pay for health benefits, a portion of the
contributions shall then be set aside in the Fund as described in
paragraph (b).
``(7) Under this subsection, `supplemental liability' means--
``(A) the actuarial present value for future post-
retirement health benefits that are the liability of the Fund,
less
``(B) the sum of--
``(i) the actuarial present value of all future
contributions by agencies and annuitants to the Fund
toward those benefits pursuant to section 8906;
``(ii) the present value of all scheduled
amortization payments to the Fund pursuant to
paragraphs (1) and (2);
``(iii) the Fund balance as of the date the
supplemental liability is determined, to the extent
that such balance is attributable to post-retirement
benefits; and
``(iv) any other appropriate amount, as determined
by the Office in accordance with generally accepted
actuarial practices and principles.''.
SEC. 212. UNIFORMED SERVICES HEALTH BENEFITS FOR RETIREES.
(a) Section 1111 of title 10, United States Code, is amended--
(1) in subsection (a)--
(A) by striking ``Medicare-Eligible''; and
(B) by striking ``for medicare eligible
beneficiaries'' and inserting ``including care provided
in military treatment facilities'';
(2) in subsection (b)(1), by striking ``for medicare
eligible beneficiaries'', ``medicare eligible'' and ``medicare-
eligible'';
(3) by striking subsection (b)(2); and
(4) by redesignating subsection (b)(3) as (b)(2);
(b) Section 1113(a) of such title 10 is amended by striking ``for
medicare-eligible beneficiaries'' and inserting ``including care
provided in military treatment facilities''.
(c) Section 1114(a)(1) of such title 10 is amended by striking
``medicare-eligible''.
(d) Section 1116 of such title 10 is amended--
(1) in subsection (a), by inserting before the colon ``,
less the amount in paragraph (c)'';
(2) in subsection (a)(1)(B), by adding at the end the
following new paragraph:
``The amount paid into the Fund under this subsection shall be paid
from the funds available for the military personnel accounts.'';
(3) in subsection (a)(2)(B), by striking ``Defense Health
Program'' and inserting ``military personnel accounts''; and
(4) by adding at the end the following new subsection (c):
``(c) The Secretaries of Health and Human Services, Commerce, and
Transportation shall pay into the Fund each month, from amounts
available for salaries and expenses, the portion of the amounts
determined by the Secretary of Defense under (a)(1) and (a)(2) which
are attributable to service performed, respectively, by the uniformed
services of the Coast Guard, the Commissioned Officer Corps of the
Public Health Service, and the Commissioned Officer Corps of the
National Oceanic and Atmospheric Administration.''.
(5) by adding at the end the following new subsection (d):
``(d) To avoid funding differences in the first year should formal
actuarial determinations not be available in time for budget
preparation, the monthly dollar amounts used in the first year sections
1116(a)(1)(A) and 1116(a)(2)(A) shall be set equal to those estimates
in section 1115(b)(1)(A)(i) and 1115(b)(1)(B)(i) if formal actuarial
determinations are not available. The original unfunded liability as
defined in 1115(a) shall include an adjustment to correct for the
difference between the formal actuarial determinations and the
estimates in section 1115(b)(1).''.
(e) Conforming Amendment.--The heading for chapter 56 of title 10,
United States Code, is amended to read as follows:
``CHAPTER 56--UNIFORMED SERVICES RETIREE HEALTH CARE FUND''.
SEC. 213. EFFECTIVE DATE.
Except as otherwise provided herein, this Title shall take effect
upon enactment with respect to fiscal years beginning after 2002.
TITLE III--FEDERAL PROPERTY ASSET MANAGEMENT REFORMS
SEC. 301. DEFINITIONS.
Section 3 of the Federal Property and Administrative Services Act
of 1949 (hereinafter in this title referred to as the ``Act''), as
amended (40 U.S.C. Sec 472), is amended by adding at the end the
following:
``(m) The term `landholding agency' means any Federal agency that,
by specific or general statutory authority, has jurisdiction, custody,
and control over real property, or interests therein. The term does not
include agencies when they are disposing of real property for public
benefit purposes pursuant to section 203 of the Act (40 U.S.C. Sec.
484), and does not apply to Indian lands--i.e., lands held in trust or
restricted fee status for individual Indians or Indian Tribes.''.
Subtitle A--Life Cycle Planning and Management
Title II of the Act, as amended, is amended by adding at the end
thereof the following new sections:
``Sec. 213. (a) Asset Management Principles.--In accordance with
the authorities vested in the Administrator under section 205(c) of
this Act, the Administrator, in collaboration with the heads of Federal
agencies and the Office of Management and Budget, shall establish and
maintain current asset management principles to be applied where
appropriate to real and personal property assets subject to this Act
and under the jurisdiction, custody and control of such agencies. With
respect to the outlease of Federal Property through the use of public-
private partnerships authorized in section 216(d), the Administrator
shall require the use of the following principles: (1) under no
circumstances shall the liability of the government arising from an
arrangement with a non-governmental entity or from the operation of any
partnership, cooperative venture, limited liability company,
corporation, trust, or other business arrangement created as the result
of an agreement with a non-governmental entity exceed the amount of the
Federal government's capital contribution or equity contribution; (2)
such projects will only be undertaken if the federal asset is not
developed to its highest and best use and the project is economically
viable; determination of economic viability would include, among other
relevant economic factors, the internal rate of return of the
investment to the government (with preference given to higher rates of
return) at leaseback rates not exceeding market rates; and (3) projects
will only be undertaken if the market conditions are favorable to
development and `full occupancy' by government or private tenants.
``(b) Performance Measurement Benchmarks.--The Administrator, in
consultation with the heads of landholding agencies, shall establish
performance measures to determine the effectiveness of Federal real
property management. These measures shall monitor and assess: (1) the
disposal of non-performing real property assets; (2) the reduction in
vacant Federal space; (3) the realization of equity value in Federal
real property assets; (4) the value added through cooperative
arrangements with the commercial real estate community; and (5) the
enhancement of Federal agency productivity through an improved working
environment. The performance measures shall be designed to: (1) enable
the Congress and heads of agencies to track progress in the achievement
of property management objectives on a government wide basis; and (2)
allow for comparing the performance of agencies against industry and
other public sector agencies in terms of performance. In developing and
implementing the performance measures, the Administrator shall use
existing data sources and automated data collection tools to the
maximum extent practical.
``(c) Inventory Database.--In order to accumulate and maintain a
single, comprehensive descriptive listing of all Federal real property
interests under the custody and control of each Federal agency, the
Administrator, in coordination with the heads of Federal agencies,
shall collect such descriptive information, except for classified
information, as the Administrator deems will best describe the nature,
use, and extent of the real property holdings of the United States. For
purposes of this section, real property holdings include all public
lands of the United States and all real property of the United States
located outside the States of the Union, to include, but not be limited
to the District of Columbia, Puerto Rico, American Samoa, Guam, the
Trust Territory of the Pacific Islands and the Virgin Islands. To
facilitate the reporting on a uniform basis, the Administrator is
authorized to establish data and other information technology standards
for use by Federal agencies in developing or upgrading agency real
property information systems.
``(d) Public Information Access.--The listing compiled pursuant to
this section shall be public record; however, the Administrator is
authorized to withhold information, including the location of
classified facilities, when it is determined that withholding such
information would be in the public interest. Nothing herein shall
require the public release of information that is exempt from
disclosure pursuant to the Freedom of Information Act, as amended (5
U.S.C. Sec. 552).
``(e) Jurisdiction of Administrator.--Except for the purpose of
maintaining the property listing described in subparagraphs (c) and
(d), above, nothing in this section shall authorize the Administrator
to assume jurisdiction over the acquisition, management, or disposal of
real property not subject to this Act.
``Sec. 214. (a) Within 180 days of the effective date of this
section, the head of each landholding agency shall appoint, or
designate from among senior management officials within such agency, a
Senior Real Property Officer. Such individual shall be selected with
special attention to the qualifications required to administer the
functions described under this section. The head of any landholding
agency who so desires may also appoint a Real Property Officer for any
major component part of an agency, and such Real Property Officers, for
the purposes of complying with this title, shall report to the Senior
Real Property Officer.
``(b) The Senior Real Property Officer for each agency shall be
responsible for continuously monitoring agency real property assets
to--
``(1) manage each asset, including but not limited to its
functional use, occupancy, reinvestment requirements and future
utility, in a manner fully consistent with and supportive of
the goals and objectives set forth in the agency's Strategic
Plan required under section 3 of the Government Performance and
Results Act of 1993, Public Law 103-62 (5 U.S.C. Sec. 306),
consistent with the framework provided by the real property
asset management principles published by the Administrator
pursuant to section 213(a), and reflected to an agency asset
management plan. The asset management plan shall be prepared
according to guidelines issued by the Administrator, shall be
maintained to reflect current agency program and budget
priorities, and be consistent with capital planning and
programming guidance issued by the Office of Management and
Budget;
``(2) identify real property assets that can benefit from
the application of the enhanced asset management tools
described in section 216;
``(3) apply enhanced asset management tools, in those cases
where a real property asset can so benefit, in such a way that
any resulting transaction will result in a fair return on the
Federal government investment and protect the Federal
government from unreasonable financial or other risks; and
``(4) provide to the Administrator a listing and
description of the real property assets, under the
jurisdiction, custody and control of that agency, including
public lands of the United States and property located in
foreign lands, along with any other relevant information the
Administrator may request, for inclusion in a government-wide listing
of all Federal real property interests established and maintained in
accordance with section 213(c) of this title.
``(5) determine the performance of the agency against the
performance measures established under section 213(b) and
report the results of such monitoring to the Congress in the
agency's budget submission under section 1005 of title 31,
United States Code.
``(c) Except as otherwise provided by Federal law, prior to a
Federal agency acquiring any interests in real property from any non-
Federal source, the Senior Real Property Officer of the acquiring
agency shall give first consideration to available Federal real
property holdings.''.
Subtitle B--Enhanced Authorities for Real Property Asset Management
SEC. 311. ENHANCED ASSET MANAGEMENT TOOLS.
Title II of the Act, as amended, is amended by adding at the end
thereof the following new sections:
``criteria for using enhanced asset management tools
``Sec. 215. (a) Subject to the requirements of subsection (b) of
this section, the head of a landholding agency may apply an enhanced
asset management tool described in section 216 to a real property
interest under the agency's jurisdiction, custody and control when the
head of the agency has determined that such real property interest--
``(1) when used to acquire replacement real property, is
not excess property within the meaning given in subsection 3(e)
of this Act (40 U.S.C. Sec. 472(e)); provided, further, the
agency shall include as part of the documentation required
under subsection (b)(3) a description of the need and mission
requirement fulfilled by the Federal property;
``(2) is used to fulfill or support a continuing mission
requirement of the agency; and
``(3) can, by applying an enhanced asset management tool,
improve the support of such mission.
``(b) Before applying an enhanced asset management tool defined in
section 216 to a real property interest identified under subsection (a)
of this section, the head of the agency shall determine that such
application meets all of the following criteria:
``(1) Supports the goals and objectives set forth in the
agency's Strategic Plan required under section 3 of the
Government Performance and Results Act of 1993, Public Law 103-
62 (5 U.S.C. Sec. 306) and the agency's real property asset
management plan as required in section 214.
``(2) Use of the real property is economical, cost
effective, and in the best interests of the United States.
``(3) Is documented in a business plan which, commensurate
with the nature of the selected tool, analyzes all reasonable
options for using the property; takes into account applicable
provisions of law including but not limited to the National
Environmental Policy Act of 1969, as amended; and evidences
compliance with the requirements of the McKinney-Vento Homeless
Assistance Act, including (i) describing the result of the
determination by the Department of Housing and Urban
Development of the suitability of the property for use to
assist the homeless; and (ii) explaining the rationale for the
landholding agency's decision not to make the property
available for use to assist the homeless.
``enhanced asset management tools
``Sec. 216. (a) Interagency Transfers or Exchanges.--Any
landholding agency may acquire replacement real property by transfer or
exchange of real property subject to this Act with other Federal
agencies under terms mutually agreeable to the agencies involved.
``(b) Sales To or Exchanges With Non-Federal Sources.--Any
landholding agency may acquire replacement real property by selling or
exchanging a real property asset or interests therein with any non-
Federal source; provided that: (1) this transaction does not conflict
with other applicable laws governing the acquisition of interests in
real property by Federal agencies; (2) the agency first made the
property available for transfer or exchange to other Federal agencies;
and (3) the transaction results in the agency receiving fair market
value consideration, as determined by the agency head, which
consideration may be future consideration, for the asset sold or
exchanged.
``(c) Subleases.--The head of any landholding agency, by lease,
permit, license or similar instrument, may make available to other
Federal agencies and to non-Federal entities the unexpired portion of
any government lease for real property; provided that the term of any
sublease shall not exceed the unexpired portion of the term of the
original government lease of the property and the sublease results in
the agency receiving fair market rental value for the asset. Prior to
subleasing to any private person or private sector entity, the Federal
agency shall give consideration to the needs of the following entities
with the needs of entities listed in paragraph (1) being considered
before the needs of entities listed in paragraph (2):
``(1) First priority.--The needs of each of the following
entities, equally, shall be given first priority by the agency:
``(A) Federal agencies; and
``(B) Indian tribes (as defined by section 4 of the
Indian Health Care Improvement Act (25 U.S.C
Sec. 1603)), urban Indian organizations (as defined by
that section), and tribal organizations (as defined by
section 4 of the Indian Self-Determination and
Education Assistance Act (25 U.S.C. 450b)), through the
Secretaries of the Department of the Interior and the
Department of Health and Human Services, when the
property is to be used in connection with an Indian
Self-Determination contract or grant pursuant to the
Indian Self-Determination Act (25 U.S.C. 450f et seq.).
``(2) Second priority.--The needs of each of the following
entities, equally, shall be given second priority by the
agency:
``(A) State and local governments; and
``(B) Indian tribes, tribal organizations, and
urban Indian organizations (defined as in paragraph
(1)(B)), through the Secretaries of the Department of
the Interior the Department of Health and Human
Services when the property is to be used for purposes
other than as described in paragraph (1) and such uses
of the property are authorized by law other than this
subsection.
``(d) Outleases.--The head of any landholding agency may make
available by outlease agreements with other Federal agencies and non-
Federal entities any unused or underused portion of or interest in any
agency real and related personal property after finding that (i) there
is no long-term mission requirement for the property, but the Federal
Government is not permitted to dispose of it; or (ii) there is a
continuing long-term mission requirement for the property to remain in
Government ownership, and (iii) the use of the real property by the
lessee will not be inconsistent with the statutory mission of the
landholding agency; provided that such an outlease transaction to a
non-Federal entity is conducted competitively.
``(1) Outlease agreements.--In order to reduce vacant space
and realize the equity value of Government-owned real property
assets, provide Federal agencies with modern functional work
environments, and work cooperatively with the commercial real
estate community, any outlease agreements authorized under this
subsection--
``(A) may be a partnership, cooperative venture,
limited liability company, corporation, trust, sole
proprietorship, or other business arrangement;
``(B) shall be for a term no longer than 50 years;
``(C) shall result in the agency receiving fair
market value consideration, as defined by the agency
head, for the asset, including cash, other property
(either real or personal), services, and/or in-kind or
future consideration;
``(D) may provide a leaseback option to the Federal
government to occupy space in any facilities acquired,
constructed, repaired, renovated, or rehabilitated by
the non-governmental entity, provided that the
agreement does not guarantee government occupancy;
provided further that any subsequent agreements to
leaseback space in such facilities must be in
accordance with the competition requirements of Title
III of this Act (41 U.S.C. Sec. 253 et seq.);
``(E) shall provide (i) that neither the United
States, nor its agencies or employees, shall be liable
for any actions, debts or liability of the lessee, and
(ii) that the lessee shall not be authorized to execute
and shall not execute any instrument or document
creating or evidencing any indebtedness unless such
instrument or document specifically disclaims any
liability of the United States, and of any Federal
agency or employee thereunder in excess of the
Government's capital contribution in the lessee;
``(F) shall provide (i) that the Government's
interest under the agreement is senior to that of any
lender to a non-government entity, and (ii) that under
no circumstances shall the liability of the United
States arising from its arrangement with the non-
governmental entity or from the operations of any
partnership, cooperative venture, limited liability
company, corporation, trust, or other business
arrangement created as the result of the agreement with
a non-governmental entity exceed the amount of the
Federal government's capital contribution or equity
contribution to the partnership, cooperative venture,
limited liability company, corporation, trust, or other
business arrangement; and
``(G) may contain such other terms and conditions
as the head of the agency making the property available
deems necessary to protect the interests of the Federal
government.
``(2) Order of consideration.--In making property available
for outlease, the landholding agency shall follow the order of
consideration listed in subsection (c) of this section.
``(3) Prerequisites to agreements.--Prior to the head of
any landholding agency executing any agreement authorized under
subsection (d) of this section that would result in the
development or substantial rehabilitation or renovation of
Federal assets in a business arrangement with a non-Federal
entity, the head of such agency shall undertake an analysis of
the proposed arrangement or transaction to determine the
business and legal risks and benefits to the Federal Government
that would likely result from the proposed arrangement or
transaction.
``(4) Scoring.--For the sole purpose of scoring lease-back
agreements, if the non-Federal entity shall exercise management
control of the business of the public-private entity and holds
a majority interest in ownership in the public-private venture;
then the project shall not be considered to be constructed on
government-owned land for purposes of the application of
scoring rules. All leaseback agreements must meet the
requirements of an operating lease as specified in relevant OMB
Circulars.
``(5) Authority for disposition of leased property.--If,
during the term of an outlease involving the development or
substantial rehabilitation/renovation of a Federal asset in a
business arrangement with a non-Federal entity, the head of the
agency determines that the property is no longer needed by the
agency, the head of the agency may initiate action for the transfer to
the lessee of all right, title, and interest of the United States in
the property by requesting the Administrator of General Services to
dispose of the property. A disposition under this section may be made
for such consideration as the head of the agency and the Administration
jointly determine is in the best interests of the United States and
upon such other terms and conditions as the head of the agency and the
Administrator consider appropriate.
``(6) Other authorities.--The authority under this
subsection shall not be construed to affect any other authority
of any agency to outlease property or to otherwise make
property available for any reason.
``(7) Sunset provision.--The authority to enter into new
outlease agreements under subsection 216(d) expires 10 years
after the date of enactment. The effectiveness of the use of
such authority shall be reviewed biennially by the General
Accounting Office.
``forms of consideration
``Sec. 217. Notwithstanding any other provision of law, the forms
of consideration received from an enhanced asset management tool as
described in section 216 may include cash or cash equivalents, other
property (either real of personal), in-kind assets, services, future
consideration, or any combination thereof.
``transactional reports
``Sec. 218. For those transactions authorized under section 216
involving the sale, exchange or outlease to a non-Federal source of any
asset valued in excess of $2 million at the time of the transaction,
the head of the landholding agency performing the transaction shall
submit the business plan required by subsection 215(b)(3) to the Office
of Management and Budget and to appropriate Committees of the United
States Senate and the House of Representatives at least 30 calendar
days prior to final execution of such transaction. The $2 million
threshold in this subsection may be adjusted upward or downward by the
Administrator to reflect the annual inflation/deflation factor as
determined by the Department of Commerce Consumer Price Index.''.
SEC. 312. REPEAL OF SECTION 321 OF THE FEDERAL PROPERTY AND
ADMINISTRATION SERVICES ACT.
Section 321 of the Act of June 30, 1932, 47 Stat. 412 (40 U.S.C.
Sec. 303b), is repealed.
SEC. 313. DISPOSAL OF SURPLUS PROPERTY.
Subsection 203(b) of the Act, as amended to read as follow:
``(b)(1) The care and handling of surplus property, pending its
disposition, and the disposal of such property, may be performed by the
General Services Administration or, when so determined by the
Administrator, by the executive agency in possession thereof or by any
other executive agency consenting thereto.
``(2) Upon the written request of a landholding agency, the
Administrator shall delegate all responsibilities and authorities for
the care and handling of surplus real and related personal property,
pending its disposition, and for the disposal of such property,
provided to the Administrator elsewhere in this Act, to the head of the
landholding agency. The Administrator of General Services retains the
authority to promulgate general policies and procedures for disposing
of such property. These policies and procedures shall require that the
General Services Administration--
``(A) notify the agencies responsible elsewhere in this Act
for sponsoring public benefit conveyances of the availability
of excess property as soon as it has been declared excess and
solicit their input on whether their public benefit represents
the highest and best use of such property;
``(B) serve as the central point of contact for agencies,
prospective donees, and the public on the availability of
surplus property as soon as it has been declared surplus;
``(C) assure that the agencies with the authority to make
disposal decisions give full consideration to the public
benefit uses of surplus Federal property in making their
disposal decisions; and
``(D) serve as a clearinghouse for information on all
phases of the surplus property disposal process, including
appeals from sponsoring agencies and prospective donees that
insufficient consideration was given to public benefit
donations.''.
Subtitle C--Incentives for Real and Personal Property Management
Improvement
SEC. 321. PROCEEDS FROM TRANSFER OR DISPOSITION OF PROPERTY.
Section 204 of the Act, as amended (40 U.S.C. Sec. 485), is amended
as follows:
(a) In paragraph (2) of subsection (h) by striking ``(b)''
and inserting in lieu thereof ``(c)'', and by striking the
phrase '', to the extent provided in appropriations Acts,''.
(b) By revising subsection (i) to read as follows:
``Federal agencies may retain from the proceeds of the sale of
personal property amounts necessary to recover, to the extend
practicable, the full costs, direct and indirect, incurred by the
agencies in disposing of such property, including but not limited to
the costs for warehousing, storage, environmental services,
advertising, appraisal, and transportation. Such amounts shall be
deposited into an account available for such expenses without regard to
fiscal year limitations. Amounts that are not needed to pay such costs
shall be transferred at least annually to the general fund or to a
specific account in the Treasury as required by statute.''.
(c) By redesignating subsections (c), (d), (e), (f), (g),
(h), and (i), as subsections (d), (e), (f), (g), (h), (i), and
(j), respectively.
(d) By striking subsections (a) and (b) and by inserting in
lieu thereof the following subsections (a), (b), and (c):
``proceeds from transfer or disposition of property
``Sec. 204. (a)(1) Agency Retention of Proceeds From Real
Property.--Proceeds resulting from the transfer or disposition of real
and related property under this Title shall be credited to the fund,
account (including the capital asset account provided in subsection (b)
of this section) or appropriation of the agency which made the property
available and shall be treated as provided in subsections (b) and (c)
of this section.
``(2) Proceeds From Personal Property.--Proceeds from any transfer
of excess personal property to a Federal agency or from any sale,
lease, or other disposition of surplus personal property shall be
treated as prescribed in subsection (j) or as otherwise authorized by
law.
``(3) Other Proceeds.--All proceeds under this Title not deposited
or credited to a specific agency account, shall be covered into the
Treasury as miscellaneous receipts except as provided in subsections
(d), (e), (f), (g), (h), (i), and (j) of this section or as otherwise
authorized by law.
``(b) Monetary Proceeds to Agency Capital Asset Accounts.--Monetary
proceeds received by agencies from the transfer or disposition of real
and related personal property shall be credited to an existing account
or an account to be established in the Treasury to pay for the capital
expenditures of the particular agency making the property available,
which account shall be known as the agency's capital asset account.
Subject to subsection (c), any amounts credited or deposited to such
account under this section, along with such other amounts as may be
appropriated or credited from time to time in annual appropriations
acts, shall be devoted to the sole purpose of funding that agency's
capital asset expenditures, including any expenses necessary and
incident to the agency's real property capital acquisitions,
improvements, and dispositions, and such funds shall remain available
until expended, in accordance with the agency's asset management plan
as required in section 214 of the Act as amended by this title, without
further authorization: Provided, That: (1) monies from an exchange or
sale of real property, or a portion of a real property holding, under
subsection 216(b) of the Act as amended by this title shall be applied
only to the replacement of that property or to the rehabilitation of
the portion of that real property holding that remains in Federal
ownership, and (2) the head of each landholding agency shall include
with the materials the agency annually submits under section 1105 of
title 31, United States Code, a detailed accounting of all real
property transactions carried out under Title II of the Act and of
receipts and disbursements from the agency's capital asset account
during the previous fiscal year.
``(c) Transactional and Other Costs.--Federal agencies may be
reimbursed from the monetary proceeds of real property dispositions or
from other available resources, including from the agency's capital
asset account, the full costs, direct and indirect, to the agency of
disposing of such property, including but not limited to the costs of
site remediation, restoration or other environmental services,
relocating affected tenants and occupants, advertising and marketing,
community outreach, surveying, appraisal, brokerage, historic
preservation services, title insurance, due diligence, document
notarization and recording services and the costs of managing leases
and providing necessary services to the lessees.''.
SEC. 322. RELATIONSHIP TO OTHER AGENCIES' AUTHORITIES TO USE DISPOSAL
PROCEDURES.
Nothing in this Title shall be construed to repeal or supersede any
other provision of Federal law directing the use of proceeds from
specific real property transactions or directing how or where a
particular Federal agency is to deposit, credit or use the proceeds
from the sale, exchange or other disposition of Federal property except
as expressly provided for herein.
SEC. 323. IMPACT ON OTHER AUTHORITIES TO USE DISPOSAL PROCEEDS.
(a) Section 2(a) of the Land and Water Conservation Act of 1965, as
amended (16 U.S.C. Sec. 460l-5(a)), is superseded only to the extent
that the Federal Property and Administrative Services Act of 1949, as
amended, or a provision of this title, provide for an alternative
disposition of the proceeds from the disposal of any surplus real
property and related personal property subject to this Act, or the
disposal of any interest therein.
(b) Subsection 3302(b) of title 31, United States Code, is
superseded only to the extent that this Act or any other Act provides
for the disposition of money received by the Government.
SEC. 324. USING SHARE OF SALE PROCEEDS TO MAINTAIN HISTORIC TREASURY
RECEIPTS.
For purposes of implementing subtitle C of this title, the
following shall apply:
(a) For fiscal years 2002 through 2006, OMB shall allocate by
agency a pro rata share of the baseline estimate of total surplus real
property sales receipts transferred to the Land and Water Conservation
Fund that were contained in the President's Budget for Fiscal Year
2002, made pursuant to section 1109 of title 31, United States Code.
OMB shall notify the affected agencies and Appropriations Committees of
the U.S. House of Representatives and Senate in writing of this
allocation within 30 days of enactment of this title and shall not
subsequently revise the allocation.
(b) On September 30 of each fiscal year, each agency shall transfer
to the Treasury an amount equal to its allocation for that fiscal year,
out of the proceeds realized from any sales of the agency's surplus
real property assets during that fiscal year.
(c) If an agency's actual sale proceeds in any fiscal year are less
than the amount allocated to it by OMB for that fiscal year, the agency
shall transfer all of its sale proceeds to the Treasury, and its
allocation for the subsequent fiscal year shall be increased by the
difference.
(d) On September 30, 2006, if an agency has transferred less sale
proceeds to the Treasury than its total allocation for the five years,
the agency shall transfer the difference out of any other funds
available to the agency.
Subtitle D--Streamlined and Enhanced Disposal Authorities
SEC. 331. INCLUDING NONPROFIT ORGANIZATIONS AS ELIGIBLE DONEES.
(a) Section 203 of the Act, as amended (40 U.S.C. Sec. 484), is
amended in paragraph (k)(3) as follows--
(1) by striking ``or municipality'' and inserting in lieu
thereof ``municipality, or qualified nonprofit organization
established for the primary purpose of preserving historic
monuments''; and
(2) by inserting after the first sentence ``Such property
may be conveyed to a nonprofit organization only if the State,
political subdivision, instrumentalities thereof, and
municipality in which the property is located do not request
conveyance under this section within thirty days after notice
to them of the proposed conveyance by the Administrator to that
nonprofit organization.''.
(b) Section 203 of the Federal Property and Administrative Services
Act of 1949, as amended (40 U.S.C. Sec. 484), is amended by revising
paragraph (k)(4)(C) to read as follows:
``(C) the Secretary of the Interior, in the case of
property transferred pursuant to the Surplus Property
Act of 1944, as amended, and pursuant to this Act, to
States, political subdivisions, and instrumentalities
thereof, and municipalities for use as a public park or
public recreation area, and to State, political
subdivisions, and instrumentalities thereof,
municipalities, and nonprofit organizations for use as
an historic monument for the benefit of the public;
or''.
SEC. 332. ELIMINATION OF CERTAIN NEGOTIATED SALE REQUIREMENTS.
(a) Section 203 of the Act, as amended (40 U.S.C. Sec. 484), is
amended in subsection (e) as follows:
(1) By striking subparagraphs (3)(A), (3)(B), (3)(C), and
(3)(E),
(2) By redesignating subparagraph (3)(D) and subparagraphs
(3)(F) through (3)(I), as subparagraphs (3)(A) through (3)(E),
respectively,
(3) By amending redesignated subparagraph (3)(E) to read as
follows:
``(E) otherwise authorized by this Act or other law
or with respect to personal property deemed
advantageous to the Government.'',
(4) By amending subparagraph (6)(A) to read as follows:
``(6)(A) An explanatory statement shall be prepared of the
circumstances of each disposal by negotiation of any real
property that has an estimated fair market value in excess of
the threshold value for which transactional reports are
required under Section 218.'',
(5) By deleting subparagraphs (6)(C) and (6)(D).
(b) Section 203 of the Federal Property and Administrative Services
Act of 1949, as amended, is further amended by adding to the end
thereof the following new subsection:
``(s) The authority of any department, agency, or instrumentality
of the executive branch or wholly owned Government corporation to
convey surplus real and related personal property for public airport
purposes under subchapter II of title 49, United States Code, shall be
subject to the requirements of this Act, and any surplus real property
available for conveyance under that subchapter shall first be made
available to the Administrator for disposal under this section,
including conveyance for any public benefit purposes, including public
airport use, as the Administrator, after consultation with the affected
agencies, deems advisable.''.
SEC. 333. EXCHANGE AND SALE OF PERSONAL PROPERTY.
Subsection 201(c) of the Act, as amended (40 U.S.C. Sec. 481(c)),
is revised to read as follows:
``(c) In acquiring personal property or related services, or a
combination thereof, any executive agency, under regulations to be
prescribed by the Administrator, subject to regulations prescribed by
the Administrator for Federal Procurement Policy pursuant to the Office
of Federal Procurement Policy Act (41 U.S.C. Sec. 401 et seq.), may
exchange or sell personal property and may apply the exchange allowance
or proceeds of sale in such cases in whole or in part payment for
similar property or related services, or a combination thereof,
acquired: Provided, that any transaction carried out under the
authority of this subsection shall be evidenced in writing. Sales of
property pursuant to this subsection shall be governed by subsection
203(e) of this title, and shall be exempted from the provisions of
section 5 of title 41, United States Code.''.
SEC. 334. EXPANSION OF ABANDONMENT AUTHORITY.
Subsection 202(h) of the Act, as amended (40 U.S.C. Sec. 483(h)),
is amended to read as follows:
``(h) The Administrator may authorize the abandonment, destruction,
or other disposal of property which has no commercial value or of which
the estimated cost of continued care and handling would exceed the
estimated fair market value.''.
SEC. 335. CLARIFYING CERTAIN DONATION AUTHORITIES.
Subsection 203(j) of the Act, as amended (40 U.S.C. Sec. 484(j)),
is further amended as follows:
(a) Paragraph (j)(1) is amended--
(1) by striking the phrase ``the fair and equitable
distribution, through donation,'' and inserting in lieu thereof
``donation on a fair and equitable basis''; and
(2) by striking ``paragraphs (2) and (3)'' and inserting in
lieu thereof ``paragraph (2)''.
(b) Paragraph (j)(2) is deleted.
(c) Paragraph (j)(3) is renumbered (j)(2) and amended as follows:
(1) By deleting the introductory paragraph and inserting in
lieu thereof the following:
``(2) The Administrator shall, pursuant to criteria that
are based on need and utilization and established after such
consultation with State agencies as is feasible, allocate
surplus personal property among the States on a fair and
equitable basis, taking into account the condition of the
property as well as the original acquisition cost thereof, and
transfer to the State agency property selected by it for
purpose of donation within the State--''.
(2) in subparagraph (B) by--
(A) deleting ``providers of assistance to homeless
individuals, providers of assistance to families or
individuals whose annual incomes are below the poverty
line (as that term is defined in section 673 of the
Community Services Block Grant Act),'';
(B) striking out ``schools for the mentally
retarded, schools for the physically handicapped'' and
by inserting in lieu thereof ``schools for persons with
mental or physical disabilities'';
(C) striking the word ``and'' before ``libraries'';
and
(D) inserting ``and educational activities
identified by the Secretary of Defense as being of
special interest of the Armed Services,'' following the
word ``region,''; and
(3) By adding a new subparagraph (C) to read as follows:
``(C) to nonprofit institutions or organizations
that are exempt from taxation under section 501 of
title 26, United States Code, and which have for their
primary function the provision of food, shelter, or
other necessities to homeless individuals or families
or individuals whose annual income is below the poverty
line (as that term is defined in section 673 of the
Community Service Block Grant Act) for use in assisting
the poor and homeless.''.
(d) Paragraph (j)(4) is renumbered (j)(3).
(e) Paragraph (j)(5) is renumbered (j)(4).
SEC. 336. STREAMLINING CONSIDERATION OF SURPLUS REAL PROPERTY FOR
HOMELESS ASSISTANCE.
(a) Section 501 of the McKinney-Vento Homeless Assistance Act, as
amended (42 U.S.C. Sec. 11411) is amended as follows:
(1) In the first sentence of subsection (a), by inserting
before the period the following: ``, and that have not been
previously reported on by an agency under this subsection''.
(2) In the second sentence of subsection (a), by inserting
after ``to the Secretary'' the following:
``, which shall not include information previously reported on
by an agency under this subsection''.
(3) In subsection (b)(1), (c)(1)(A), and (c)(2)(A), by
striking ``45'' and inserting ``30''.
(4) In subsection (c)(1)(A)(i), by inserting after ``(a)''
the following: ``that have not been previously published''.
(5) In subsection (c)(1)(A)(ii), by inserting after
``properties'' the following: ``that have not been previously
published''.
(6) By striking subsections (c)(1)(D) and (c)(4),
(7) In subsection (c)(2)(B), by inserting at the end the
following new sentence: ``Such efforts as are necessary to
provide for the widest possible dissemination of the
information on such list shall include publishing the
information on an Internet website maintained by the Secretary
and providing notice of the information on such list tot he
local Continuum of Care organization for homeless assistance
within the jurisdiction in which the property is located, or if
there is no such organization, then to the State.''.
(8) In subsections (d)(1) and (d)(2), by striking ``60''
and inserting ``90''.
(9) In subsection (d)(4)(A), by amending to read as
follows: ``(4)(A) Written notice of intent to apply for a
property published under subsection (c)(1)(A)(ii) of this
section may be filed at any time after the 90-day period
prescribed in paragraph (1) has expired. In such case, an
application submitted pursuant to the notice may be approved
for disposal for use to assist the homeless only if the
property remains available for use to assist the homeless. If
the property remains available for use to assist the homeless,
the use to assist the homeless shall be given the same priority
of consideration as a public health use under section 484(k) of
title 40, United States Code.'',
(10) In subsection (e)(3), by inserting the following
sentence immediately after the first sentence: ``The Secretary
of Health and Human Services shall give a preference to
applications that contain a certification that their proposal
is consistent with the local Continuum of Care strategy for
homeless assistance.'',
(11) In subsection (f)(3)(A), by adding at the end the
following: ``Such priority of consideration shall apply only
with respect to properties as to which the written notice of
intent to apply for a property set forth in subsection (d)(2)
of this section is received by the Secretary of Health and
Human Services within the 90-day period described in section
(d)(1).''.
(12) In subsection (h) heading, by striking ``Applicability
to Property under Base Closure Process'' and inserting
``Exemptions''; and
(13) In subsection (h), by adding the following new
paragraph at the end:
``(3) The provisions of this section shall not apply to
buildings and property that are--
``(A) in a secured area for national defense
purposes; or
``(B) inaccessible by road and can be reached only
by crossing private property.''.
(b) Within 30 days of the date of enactment of this section, the
Secretary of Housing and Urban Development shall survey landholding
agencies to determine whether the properties included in the last
comprehensive list of properties published pursuant to section
501(c)(1)(A) of the McKinney-Vento Homeless Assistance Act remain
available for application for use to assist homeless. The Secretary
shall publish in the Federal Register a list of all such properties.
Such properties shall remain available for application for use to
assist the homeless in accordance with sections 501(d) and 501(e) of
such Act (as amended by subsection (a) of this section) as if such
properties had been published under section 501(c)(1)(A)(ii) of such
Act.
Subtitle E--Miscellaneous
SEC. 341. SCOPE AND CONSTRUCTION.
The authorities granted by this title to the heads of Federal
agencies for the management of real and personal property and the
conduct of transactions involving such property, including the
disposition of the proceeds therefrom, shall be in addition to, and not
in lieu of, any authorities provided in any law existing on the date of
enactment hereof. Except as expressly provided herein, nothing in this
title shall be construed to repeal or supersede any such authorities.
SEC. 342. SEVERABILITY.
Although this title is intended to be integrated legislation,
should any portion or provision of this title be found to be invalid or
otherwise unenforceable by a court of competent jurisdiction, such
portion or portions of this title shall be considered independent and
severable for all other provisions of this title and such invalidity
shall not, by itself, invalidate any other provisions of this title,
which remaining provisions shall have the full force and effect of law.
SEC. 343. NO WAIVER.
Nothing in this title should be construed to limit or waive any
right, remedy, immunity, or jurisdiction of any Federal agency or any
claim, judgement, lien, or benefit due the United States of America.
SEC. 344. AGENCY DISCRETION.
The provisions of this title, including those authorizing the
exercise of agency discretion, are not intended to, and do not, create
or enlarge any substantive or procedural rights or causes of action
against the United States, it agencies, it officers, or any person.
SEC. 345. EFFECTIVE DATE.
This title and the amendments made by its provisions shall be
effective upon enactment of this title except as otherwise specifically
provided for herein.
SEC. 346. REPORT OF THE COMPTROLLER GENERAL.
Not later than five years after the date of enactment of this
title, the Comptroller General of the United States shall submit to the
Congress a report on the use by Federal landholding agencies of the
authorities provided by this title.
<all>
Introduced in Senate
Read twice and referred to the Committee on Governmental Affairs.
Committee on Governmental Affairs Subcommittee on International Security, Proliferation and Federal Services. Hearings held.
Committee on Governmental Affairs Subcommittee on International Security, Proliferation and Federal Services. Hearings held.
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