Directs OPM to design a set of systems, including metrics, for assessing the management of human capital by Federal agencies.
Requires each agency's: (1) performance plan to describe how its performance goals and objectives are to be achieved; and (2) program performance report to include a review of the goals and evaluation of the plan relative to the agency's strategic human capital management.
Authorizes the President to prescribe rules which grant authority for agencies to appoint candidates directly to certain positions for which there exists a severe candidate shortage or a critical hiring need.
Modifies authorities regarding voluntary separation incentive pay and voluntary early retirement.
Repeals recertification requirements for senior executives. Adjusts the limitation on total annual compensation. Expands the senior executive service's limited appointment authority.
Revises agency training programs and academic degree training criteria. Allows accrual of leave for certain qualified non-Federal service.
Modifies: (1) the National Security Education Program; and (2) definitions and requirements regarding personnel management demonstration projects.
[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2651 Introduced in Senate (IS)]
107th CONGRESS
2d Session
S. 2651
To provide for reform relating to Federal employment, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 20, 2002
Mr. Voinovich (for himself, Mr. Thompson, and Mr. Cochran) introduced
the following bill; which was read twice and referred to the Committee
on Governmental Affairs
_______________________________________________________________________
A BILL
To provide for reform relating to Federal employment, 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 ``Federal Workforce
Improvement Act of 2002''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--CHIEF HUMAN CAPITAL OFFICERS
Sec. 101. Short title.
Sec. 102. Agency Chief Human Capital Officers.
Sec. 103. Chief Human Capital Officers Council.
Sec. 104. Strategic human capital management.
Sec. 105. Effective date.
TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT
Sec. 201. Inclusion of agency human capital strategic planning in
performance plans and program performance
reports.
Sec. 202. Reform of the competitive service hiring process.
Sec. 203. Permanent extension, revision, and expansion of authorities
for use of voluntary separation incentive
pay and voluntary early retirement.
Sec. 204. Streamlined critical pay authority.
Sec. 205. Recruitment, relocation, and retention bonuses.
Sec. 206. Corrections relating to pay administration.
Sec. 207. Civil Service Retirement System computation for part-time
service.
Sec. 208. Student volunteer transit subsidy.
TITLE III--REFORMS RELATING TO THE SENIOR EXECUTIVE SERVICE
Sec. 301. Repeal of recertification requirements of senior executives.
Sec. 302. Adjustment of limitation on total annual compensation.
Sec. 303. Expanded Senior Executive Service limited appointment
authority.
TITLE IV--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND
BENEFITS
Sec. 401. Agency training.
Sec. 402. Annual leave enhancements.
Sec. 403. Modifications to National Security Education Program.
TITLE V--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS
Sec. 501. Streamlined personnel management demonstration projects.
Sec. 502. Effective date.
TITLE I--CHIEF HUMAN CAPITAL OFFICERS
SEC. 101. SHORT TITLE.
This title may be cited as the ``Chief Human Capital Officers Act
of 2002''.
SEC. 102. AGENCY CHIEF HUMAN CAPITAL OFFICERS.
(a) In General.--Part II of title 5, United States Code, is amended
by inserting after chapter 13 the following:
``CHAPTER 14--AGENCY CHIEF HUMAN CAPITAL OFFICERS
``Sec.
``1401. Establishment of agency Chief Human Capital Officers.
``1402. Authority and functions of agency Chief Human Capital Officers.
``Sec. 1401. Establishment of agency Chief Human Capital Officers
``The head of each Executive agency, other than the General
Accounting Office, shall appoint or designate a Chief Human Capital
Officer, who shall--
``(1) advise and assist the head of the agency and other
agency officials in carrying out the agency's responsibilities
for selecting, developing, and managing a high-quality,
productive workforce in accordance with merit system
principles; and
``(2) implement the rules and regulations of the President
and the Office of Personnel Management and the laws governing
the civil service within the agency.
``Sec. 1402. Authority and functions of agency Chief Human Capital
Officers
``(a) The functions of each Chief Human Capital Officer shall
include--
``(1) setting the workforce development strategy of the
agency;
``(2) assessing workforce characteristics and future needs
based on the agency's mission and strategic plan;
``(3) aligning the agency's human resources policies and
programs with organization mission, strategic goals, and
performance outcomes;
``(4) developing and advocating a culture of continuous
learning to attract and retain employees with superior
abilities;
``(5) identifying best practices and benchmarking studies;
and
``(6) applying methods for measuring intellectual capital
and identifying links of that capital to organizational
performance and growth.
``(b) In addition to the authority otherwise provided by this
section, each agency Chief Human Capital Officer--
``(1) shall have access to all records, reports, audits,
reviews, documents, papers, recommendations, or other material
that--
``(A) are the property of the agency or are
available to the agency; and
``(B) relate to programs and operations with
respect to which that agency Chief Human Capital
Officer has responsibilities under this chapter; and
``(2) may request such information or assistance as may be
necessary for carrying out the duties and responsibilities
provided by this chapter from any Federal, State, or local
governmental entity.''.
(b) Technical and Conforming Amendment.--The table of chapters for
part II of title 5, United States Code, is amended by inserting after
the item relating to chapter 13 the following:
``14. Chief Human Capital Officers.......................... 1401''.
SEC. 103. CHIEF HUMAN CAPITAL OFFICERS COUNCIL.
(a) Establishment.--There is established a Chief Human Capital
Officers Council, consisting of--
(1) the Director of the Office of Personnel Management, who
shall act as chairperson of the Council;
(2) the Deputy Director for Management of the Office of
Management and Budget, who shall act as vice chairperson of the
Council; and
(3) the Chief Human Capital Officers of Executive
departments and any other members who are designated by the
Director of the Office of Personnel Management.
(b) Functions.--The Chief Human Capital Officers Council shall meet
periodically to advise and coordinate the activities of the agencies of
its members on such matters as modernization of human resources
systems, improved quality of human resources information, and
legislation affecting human resources operations and organizations.
(c) Employee Labor Organizations at Meetings.--The Chief Human
Capital Officers Council shall ensure that representatives of Federal
employee labor organizations are present at a minimum of 1 meeting of
the Council each year. Such representatives shall not be members of the
Council.
(d) Annual Report.--Each year the Chief Human Capital Officers
Council shall submit a report to Congress on the activities of the
Council.
SEC. 104. STRATEGIC HUMAN CAPITAL MANAGEMENT.
Section 1103 of title 5, United States Code, is amended by adding
at the end the following:
``(c)(1) The Office of Personnel Management shall design a set of
systems, including appropriate metrics, for assessing the management of
human capital by Federal agencies.
``(2) The systems referred to under paragraph (1) shall be defined
in regulations of the Office of Personnel Management and include
standards for--
``(A)(i) aligning human capital strategies of agencies with
the missions, goals, and organizational objectives of those
agencies; and
``(ii) integrating those strategies into the budget and
strategic plans of those agencies;
``(B) closing skill gaps in mission critical occupations;
``(C) ensuring continuity of effective leadership through
implementation of recruitment, development, and succession
plans;
``(D) sustaining a culture that differentiates between high
and low performers and provides appropriate incentives and
awards;
``(E) developing and implementing a knowledge management
strategy supported by appropriate investment in training and
technology; and
``(F) holding managers and human resources officers
accountable for efficient and effective human resources
management in support of agency missions in accordance with
merit system principles.''.
SEC. 105. EFFECTIVE DATE.
This title shall take effect 180 days after the date of enactment
of this Act.
TITLE II--REFORMS RELATING TO FEDERAL HUMAN CAPITAL MANAGEMENT
SEC. 201. INCLUSION OF AGENCY HUMAN CAPITAL STRATEGIC PLANNING IN
PERFORMANCE PLANS AND PROGRAM PERFORMANCE REPORTS.
(a) Performance Plans.--Section 1115(a) of title 31, United States
Code, is amended by striking paragraph (3) and inserting the following:
``(3) provide a description of how the performance goals
and objectives are to be achieved, including the operational
processes, training, skills and technology, and the human,
capital, information, and other resources and strategies
required to meet those performance goals and objectives.''.
(b) Program Performance Reports.--Section 1116(d) of title 31,
United States Code, is amended--
(1) in paragraph (4), by striking ``and'' after the
semicolon;
(2) by redesignating paragraph (5) as paragraph (6); and
(3) by inserting after paragraph (4) the following:
``(5) include a review of the performance goals and
evaluation of the performance plan relative to the agency's
strategic human capital management; and''.
SEC. 202. REFORM OF THE COMPETITIVE SERVICE HIRING PROCESS.
(a) In General.--Chapter 33 of title 5, United States Code, is
amended--
(1) in section 3304(a)--
(A) in paragraph (1), by striking ``and'' after the
semicolon;
(B) in paragraph (2), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(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.''; and
(2) by inserting after section 3318 the following:
``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 applicants for
positions in the competitive service, under which qualified candidates
are divided into 2 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 of the General Schedule (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)(1) An appointing official may select any applicant in the
highest quality category or, if fewer than 3 candidates have been
assigned to the highest quality category, in a merged category
consisting of the highest and the second highest quality categories.
``(2) Notwithstanding paragraph (1), 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) Each agency that establishes a category rating system under
this section shall submit in each of the 3 years following that
establishment, a report to Congress on that system including
information on--
``(1) the number of employees hired under that system; and
``(2) the way in which managers were trained in the
administration of that system.
``(e) The Office of Personnel Management may prescribe such
regulations as it considers necessary to carry out the provisions of
this section.''.
(b) Terminal and Conforming Amendment.--The table of sections for
chapter 33 of title 5, United States Code, is amended by striking the
item relating to section 3319 and inserting the following:
``3319. Alternative ranking and selection procedures.''.
SEC. 203. PERMANENT EXTENSION, REVISION, AND EXPANSION OF AUTHORITIES
FOR USE OF VOLUNTARY SEPARATION INCENTIVE PAY AND
VOLUNTARY EARLY RETIREMENT.
(a) Voluntary Separation Incentive Payments.--
(1) In general.--
(A) Amendment to title 5, united states code.--
Chapter 35 of title 5, United States Code, is amended
by inserting after subchapter I the following:
``SUBCHAPTER II--VOLUNTARY SEPARATION INCENTIVE PAYMENTS
``Sec. 3521. Definitions
``In this subchapter, the term--
``(1) `agency' means an Executive agency as defined under
section 105; and
``(2) `employee'--
``(A) means an employee as defined under 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--
``(i) is serving under an appointment
without time limitation; and
``(ii) has been currently employed for a
continuous period of at least 3 years; and
``(B) shall not include--
``(i) a reemployed annuitant under
subchapter III of chapter 83 or 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 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--
``(I) during the 36-month period
preceding the date of separation of
that employee, performed service for
which a student loan repayment benefit
was or is to be paid under section
5379;
``(II) during the 24-month period
preceding the date of separation of
that employee, performed service for
which a recruitment or relocation bonus
was or is to be paid under section
5753; or
``(III) during the 12-month period
preceding the date of separation of
that employee, performed service for
which a retention bonus was or is to be
paid under section 5754.
``Sec. 3522. Agency plans; approval
``(a) Before obligating any resources for voluntary separation
incentive payments, the head of each agency shall submit to the Office
of Personnel Management a plan outlining the intended use of such
incentive payments and a proposed organizational chart for the agency
once such incentive payments have been completed.
``(b) The plan of an agency under subsection (a) shall include--
``(1) the specific 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 Personnel Management shall
review each agency's plan and may make any appropriate modifications in
the plan, in consultation with the Director of the Office of Management
and Budget. A plan under this section may not be implemented without
the approval of the Director of the Office of Personnel Management.
``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 plan of
an agency established under section 3522.
``(b) A voluntary incentive payment--
``(1) shall be offered to agency employees on the basis
of--
``(A) 1 or more organizational units;
``(B) 1 or more occupational series or levels;
``(C) 1 or more geographical locations;
``(D) skills, knowledge, or other factors related
to a position;
``(E) specific periods of time during which
eligible employees may elect a voluntary incentive
payment; or
``(F) any appropriate 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 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) The term `employment'--
``(1) in subsection (b) includes employment under a
personal services contract (or other direct contract) with the
United States Government (other than an entity in the
legislative branch); and
``(2) in subsection (c) does not include employment under
such a contract.
``(b) 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 within 5 years
after the date of the separation on which the payment is based shall be
required to pay, before the individual's first day of employment, the
entire amount of the incentive payment to the agency that paid the
incentive payment.
``(c)(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--
``(A) the individual involved possesses unique abilities
and is the only qualified applicant available for the position;
or
``(B) in the case of an emergency involving a direct threat
to life or property, the individual--
``(i) has skills directly related to resolving the
emergency; and
``(ii) 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 an entity in the
legislative branch, the head of the entity or the appointing official
may waive the repayment if the individual involved possesses unique
abilities and is the only qualified applicant available for the
position.
``(3) 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.
``Sec. 3525. Regulations
``The Office of Personnel Management may prescribe regulations to
carry out this subchapter.''.
(B) Technical and conforming amendments.--Chapter
35 of title 5, United States Code, is amended--
(i) by striking the chapter heading and
inserting the following:
``CHAPTER 35--RETENTION PREFERENCE, VOLUNTARY SEPARATION INCENTIVE
PAYMENTS, RESTORATION, AND REEMPLOYMENT''; and
(ii) in the table of sections by inserting
after the item relating to section 3504 the
following:
``SUBCHAPTER II--VOLUNTARY SEPARATION INCENTIVE PAYMENTS
``3521. Definitions.
``3522. Agency plans; approval.
``3523. Authority to provide voluntary separation incentive payments.
``3524. Effect of subsequent employment with the Government.
``3525. Regulations.''.
(2) Administrative office of the united states courts.--The
Director of the Administrative Office of the United States
Courts may, by regulation, establish a program substantially
similar to the program established under paragraph (1) for
individuals serving in the judicial branch.
(3) Continuation of other authority.--Any agency exercising
any voluntary separation incentive authority in effect on the
effective date of this Act may continue to offer voluntary
separation incentives consistent with that authority until that
authority expires.
(4) Effective date.--This subsection shall take effect 60
days after the date of enactment of this Act.
(b) Federal Employee Voluntary Early Retirement.--
(1) Civil service retirement system.--Section 8336(d)(2) of
title 5, United States Code, is amended 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) has not been duly notified that such employee is to
be involuntarily separated 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
transfer of function, or other workforce restructuring
(or shaping); and
``(ii) employees serving in such agency (or
component) are likely to be separated or 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) 1 or more organizational units;
``(ii) 1 or more occupational series or levels;
``(iii) 1 or more geographical locations;
``(iv) specific periods;
``(v) skills, knowledge, or other factors related
to a position; or
``(vi) any appropriate combination of such
factors;''.
(2) Federal employees' retirement system.--Section
8414(b)(1) of title 5, United States Code, is amended by
striking subparagraph (B) and inserting the following:
``(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) has not been duly notified that such
employee is to be involuntarily separated 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 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 separated or
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
``(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) 1 or more organizational units;
``(II) 1 or more occupational series or
levels;
``(III) 1 or more geographical locations;
``(IV) specific periods;
``(V) skills, knowledge, or other factors
related to a position; or
``(VI) any appropriate combination of such
factors;''.
(3) General accounting office authority.--The amendments
made by this subsection shall not be construed to affect the
authority under section 1 of Public Law 106-303 (5 U.S.C. 8336
note; 114 Stat. 1063).
(4) Technical and conforming amendment.--Section 7001 of
the 1998 Supplemental Appropriations and Rescissions Act
(Public Law 105-174; 112 Stat. 91) is repealed.
(5) Regulations.--The Office of Personnel Management may
prescribe regulations to carry out this subsection.
(c) Sense of Congress.--It is the sense of Congress that the
implementation of this section is intended to reshape the Federal
workforce and not downsize the Federal workforce.
SEC. 204. STREAMLINED CRITICAL PAY AUTHORITY.
(a) In General.--Section 5377 of title 5, United States Code, is
amended--
(1) by striking subsection (c) and inserting the following:
``(c) The Office of Personnel Management, in consultation with the
Office of Management and Budget, may, upon the request of the head of
an agency, grant authority to fix the rate of basic pay for 1 or more
positions in such agency in accordance with this section.'';
(2) in subsection (e)(1), by striking ``Office of
Management and Budget'' and inserting ``Office of Personnel
Management'';
(3) by striking subsections (f) and (g) and inserting the
following:
``(f) The Office of Personnel Management may not authorize the
exercise of authority under this section with respect to more than 800
positions at any 1 time, of which not more than 30 may, at any such
time, be positions the rate of basic pay for which would otherwise be
determined under subchapter II.
``(g) The Office of Personnel Management shall consult with the
Office of Management and Budget before making any decision to grant or
terminate any authority under this section.''; and
(4) in subsection (h), by striking ``The Office of
Management and Budget shall report to the Committee on Post
Office and Civil Service'' and inserting ``The Office of
Personnel Management shall report to the Committee on
Government Reform.''.
SEC. 205. RECRUITMENT, RELOCATION, AND RETENTION BONUSES.
(a) Bonuses.--
(1) In general.--Chapter 57 of title 5, United States Code,
is amended by striking sections 5753 and 5754 and inserting the
following:
``Sec. 5753. Recruitment and relocation bonuses
``(a) In this section, the term `employee' has the meaning given
that term under section 2105, except that such term also includes an
employee described under subsection (c) of that section.
``(b)(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 (h), 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.
``(c)(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 4 years. The
Office may, by regulation, prescribe a minimum service.
``(2)(A) The agreement shall include--
``(i) the length of the required service period;
``(ii) the amount of the bonus;
``(iii) the method of payment; and
``(iv) other terms and conditions under which the bonus is
payable, subject to subsections (d) and (e) and regulations of
the Office.
``(B) The terms and conditions for paying a bonus, as specified in
the service agreement, shall include--
``(i) the conditions under which the agreement may be
terminated before the agreed-upon service period has been
completed; and
``(ii) 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.
``(d)(1) Except as provided in subsection (e), 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 4 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 that
individual enters on duty.
``(e) The Office may authorize the head of an agency to waive the
limitation under subsection (d)(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.
``(f) 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.
``(g) The Office may prescribe regulations to carry out this
section, including regulations relating to the repayment of a
recruitment or relocation bonus in appropriate circumstances when the
agreed-upon service period has not been completed.
``(h)(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 2 or more individual members.
``Sec. 5754. Retention bonuses
``(a) In this section, the term `employee' has the meaning given
that term under section 2105, except that such term also includes an
employee described in subsection (c) of that section.
``(b) 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.
``(c) The Office may authorize the head of an agency to pay
retention bonuses to a group of employees in 1 or more categories of
positions in 1 or more geographic areas, subject to the requirements of
subsection (b)(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.
``(d) Except as provided in subsection (j), a bonus may be paid
only to an employee covered by the General Schedule pay system
established under subchapter III of chapter 53.
``(e)(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)(A) The agreement shall include--
``(i) the length of the required service period;
``(ii) the amount of the bonus;
``(iii) the method of payment; and
``(iv) other terms and conditions under which the bonus is
payable, subject to subsections (f) and (g) and regulations of
the Office.
``(B) The terms and conditions for paying a bonus, as specified in
the service agreement, shall include--
``(i) the conditions under which the agreement may be
terminated before the agreed-upon service period has been
completed; and
``(ii) the effect of the termination.
``(3)(A) 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.
``(B) If an agency pays a retention bonus in accordance with
subparagraph (A) and makes a determination to terminate the payments,
the agency shall provide written notice to the employee of that
determination. Except as provided in regulations of the Office, the
employee shall continue to be paid the retention bonus through the end
of the pay period in which such written notice is provided.
``(4) A retention bonus for an employee may not be based on any
period of such service which is the basis for a recruitment or
relocation bonus under section 5753.
``(f)(1) Except as provided in subsection (g), 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--
``(A) 25 percent of the employee's basic pay if paid under
subsection (b); or
``(B) 10 percent of an employee's basic pay if paid under
subsection (c).
``(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.
``(g) Upon the request of the head of an agency, the Office may
waive the limit established under subsection (f)(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.
``(h) 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.
``(i) The Office may prescribe regulations to carry out this
section.
``(j)(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 2 or more individual
members.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 57 of title 5, United States Code, is
amended by striking the item relating to section 5754 and
inserting the following:
``5754. Retention bonuses.''.
(b) Relocation Payments.--Section 407 of the Federal Employees Pay
Comparability Act of 1990 (5 U.S.C. 5305 note; 104 Stat. 1467) is
repealed.
(c) Effective Date and Application.--
(1) Effective date.--Except as provided under paragraphs
(2) and (3), this section shall take effect on the first day of
the first applicable pay period beginning on or after 180 days
after the date of enactment of this Act.
(2) Application to agreements.--A recruitment or relocation
bonus service agreement that was authorized under section 5753
of title 5, United States Code, before the effective date under
paragraph (1) shall continue, until its expiration, to be
subject to section 5753 as in effect on the day before such
effective date.
(3) Application to allowances.--Payment of a retention
allowance that was authorized under section 5754 of title 5,
United States Code, before the effective date under paragraph
(1) 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 1 year after
such effective date).
SEC. 206. CORRECTIONS RELATING TO PAY ADMINISTRATION.
(a) In General.--Chapter 53 of title 5, United States Code, is
amended--
(1) in section 5302, by striking paragraph (8) and
inserting the following:
``(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 striking subsection (a) and inserting the
following:
``(a)(1) Whenever the Office of Personnel Management finds that the
Government's recruitment or retention efforts with respect to 1 or more
occupations in 1 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 1 or more grades or levels, occupational groups,
series, classes, or subdivisions thereof, and may make corresponding
increases in all rates of 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 head of an agency
shall provide 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) in subsection (b), by striking paragraph (4)
and inserting the following:
``(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 striking subsection (f) and inserting the
following:
``(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 striking subsection (h) and inserting the
following:
``(h) An 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:
``(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) in 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
this subsection.''; and
(B) by adding at the end the following:
``(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) through (7) as paragraphs
(3) through (5), respectively;
(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:
``(6) `rate of basic pay' means--
``(A) the rate of pay prescribed by law (including
regulations) for the position held by an employee
before any deductions or additions of any kind, but
including--
``(i) any applicable locality-based payment
under section 5304 or similar provision of law;
``(ii) any applicable special salary rate
under section 5305 or similar provision of law;
and
``(iii) 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 of law, 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:
``(b)(1) If an employee is entitled to pay retention under
subsection (a), paragraphs (2) and (3) shall apply in determining the
employee's rate of pay:
``(2) 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.
``(3) 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 law or as the Office of Personnel Management may by
regulation prescribe. For other purposes, the Office shall prescribe by
regulation what constitutes basic pay for employees receiving a
retained rate.
``(f) Subsections (a) through (e) do not apply (or shall cease to
apply) to an employee who--
``(1) has a break in service of 1 workday or more;
``(2) is entitled by operation of this subchapter or
chapter 51 or 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 ``provisions of
this subchapter'' the following: ``(subject to any conditions
or limitations the Office may establish)''.
(b) Special Rates for Law Enforcement Officers.--Section 403(c) of
the Federal Employees Pay Comparability Act of 1990 (5 U.S.C. 5305
note; Public Law 101-509) is amended by striking all after ``provision
of law)'' and inserting ``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) Pay Retention.--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 the pay of that employee 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 under section 5361(8) of
that title, as amended by this Act) under any authority shall be
considered to be receiving a retained rate under section 5363 of that
title.
SEC. 207. 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:
``(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. 208. STUDENT VOLUNTEER TRANSIT SUBSIDY.
(a) In General.--Section 7905(a)(1) of title 5, United States Code,
is amended by striking ``and a member of a uniformed service'' and
inserting ``, a member of a uniformed service, and a student who
provides voluntary services under section 3111''.
(b) Technical and 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''.
TITLE III--REFORMS RELATING TO THE SENIOR EXECUTIVE SERVICE
SEC. 301. REPEAL OF RECERTIFICATION REQUIREMENTS OF SENIOR EXECUTIVES.
(a) In General.--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 table of sections by striking the item
relating to section 3393a;
(2) in chapter 35--
(A) in section 3592(a)--
(i) in paragraph (1), by inserting ``or''
at the end;
(ii) in paragraph (2), by striking ``or''
at the end;
(iii) by striking paragraph (3); and
(iv) by striking the last sentence;
(B) in section 3593(a), by striking paragraph (2)
and inserting the following:
``(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 inserting ``or''
at the end;
(ii) in paragraph (2), by striking ``or''
at the end; 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 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 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) Savings Provision.--Notwithstanding the amendments made by
subsection (a)(2)(A), an appeal under the final sentence of section
3592(a) of title 5, United States Code, that is pending on the day
before the effective date of this section--
(1) shall not abate by reason of the enactment of the
amendments made by subsection (a)(2)(A); and
(2) shall continue as if such amendments had not been
enacted.
(c) Application.--The amendment made by subsection (a)(2)(B) shall
not apply with respect to an individual who, before the effective date
of this section, leaves the Senior Executive Service for failure to be
recertified as a senior executive under section 3393a of title 5,
United States Code.
SEC. 302. ADJUSTMENT OF LIMITATION ON TOTAL ANNUAL COMPENSATION.
Section 5307(a) of title 5, United States Code, is amended by
adding at the end the following:
``(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. Regulations prescribed
under subsection (c) may extend the application of this paragraph to
other equivalent categories of employees.''.
SEC. 303. EXPANDED SENIOR EXECUTIVE SERVICE LIMITED APPOINTMENT
AUTHORITY.
(a) Definitions.--Section 3132 of title 5, United States Code, is
amended--
(1) in subsection (a)--
(A) by striking paragraph (5), and inserting the
following:
``(5) `limited appointee' means an individual appointed to
a Senior Executive Service position to meet a short-term
staffing need, as determined by the Office of Personnel
Management;'';
(B) by striking paragraph (6) and redesignating
paragraphs (7), (8), and (9) as paragraphs (6), (7),
and (8), respectively; and
(C) by amending paragraph (7) as so redesignated to
read as follows:
``(7) `career reserved position' means a position
designated under subsection (b) which may be filled only by--
``(A) a career appointee; or
``(B) a limited appointee who, immediately before
entering the career reserved position, was serving
under a career or career-conditional appointment
outside the Senior Executive Service (or an appointment
of equivalent tenure, as determined by the Office of
Personnel Management), or whose limited appointment to
a career reserved position is approved in advance by
the Office of Personnel Management;''; and
(2) in subsection (b)(1), by striking ``For the purpose of
paragraph (8) of subsection (a) of this section,'' and
inserting ``For the purpose of paragraph (7) of subsection
(a),''.
(b) Noncareer and Limited Appointments.--Section 3394 of title 5,
United States Code, is amended to read as follows:
``Sec. 3394. Noncareer and limited appointments
``(a) Each noncareer appointee and limited appointee shall meet the
qualifications of the position to which appointed, as determined in
writing by the appointing authority.
``(b) An individual may not be appointed as a limited appointee
without the prior approval of the exercise of such appointment
authority by the Office of Personnel Management.
``(c) The duration of a limited appointment shall be--
``(1) 4 years or less to a Senior Executive Service
position the duties of which will expire at the end of such
term; or
``(2) 12 months or less to a Senior Executive Service
position the duties of which are continuing.
``(d) In rare circumstances, the Office of Personnel Management may
authorize an extension of a limited appointment under--
``(1) subsection (c)(1) for a period not to exceed 2 years;
and
``(2) subsection (c)(2) for a period not to exceed 12
months.
``(e) A limited appointee who has been appointed from a career or
career-conditional appointment outside the Senior Executive Service
shall have reemployment rights in the agency from which appointed, or
in another agency, under requirements and conditions established by the
Office of Personnel Management. The Office shall have the authority to
direct such placement in any agency.''.
(c) Reassignment and Transfer.--Section 3395 of title 5, United
States Code, is amended by striking subsections (b) and (c) and
inserting the following:
``(b) Notwithstanding section 3394(b)--
``(1) a limited appointee serving under a term prescribed
under section 3394(c)(1) may be reassigned to another Senior
Executive Service position in the same agency, the duties of
which will expire at the end of a term of 4 years or less,
except that the appointee may not serve in 1 or more positions
in such agency under such appointment in excess of 4 years,
unless an extension has been approved by the Office; and
``(2) a limited appointee serving under a term prescribed
under section 3394(c)(2) may be reassigned to another
continuing Senior Executive Service position in the same
agency, except that the appointee may not serve in 1 or more
positions in such agency under such appointment in excess of 12
months, unless an extension has been approved by the Office.
``(c) A limited appointee may not serve more than 7 consecutive
years under any combination of limited appointments.''.
TITLE IV--REFORMS RELATING TO FEDERAL EMPLOYEE CAREER DEVELOPMENT AND
BENEFITS
SEC. 401. AGENCY TRAINING.
(a) Training To Accomplish Performance Plans and Strategic Goals.--
Section 4103 of title 5, United States Code, is amended by adding at
the end the following:
``(c) The head of each agency shall--
``(1) evaluate each program or plan established, operated,
or maintained under subsection (a) with respect to
accomplishing specific performance plans and strategic goals in
performing the agency mission; and
``(2) modify such program or plan to accomplish such plans
and goals.''.
(b) Agency Training Officer; Specific Training Programs.--
(1) In general.--Chapter 41 of title 5, United States Code,
is amended by adding after section 4119 the following:
``Sec. 4120. Agency training officer
``Each agency shall appoint or designate a training officer who
shall be responsible for developing, coordinating, and administering
training for the agency.
``Sec. 4121. Specific training programs
``In consultation with the Office of Personnel Management, each
head of an agency shall establish--
``(1) a comprehensive management succession program to
provide training to employees to develop managers for the
agency; and
``(2) a program to provide training to managers on actions,
options, and strategies a manager may use in--
``(A) relating to employees with unacceptable
performances; and
``(B) mentoring employees and improving employee
performance and productivity.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 41 of title 5, United States Code, is
amended by adding at the end the following:
``4120. Agency training officer.
``4121. Specific training programs.''.
(c) Academic Degree Training.--
(1) In general.--Section 4107 of title 5, United States
Code, is amended 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--
``(A) meeting an identified agency training need;
``(B) resolving an identified agency staffing
problem; or
``(C) 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
``(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--
``(A) a noncareer appointment in the Senior
Executive Service; or
``(B) appointment to any position that is excepted
from the competitive service because of its
confidential policy-determining, policymaking, or
policy-advocating character.''.
(2) Technical and conforming amendment.--The table of
sections for chapter 41 of title 5, United States Code, is
amended by striking the item relating to section 4107 and
inserting the following:
``4107. Academic degree training.''.
SEC. 402. ANNUAL LEAVE ENHANCEMENTS.
(a) Accrual of Leave for Newly Hired Federal Employees With
Qualified Experience.--
(1) In general.--Section 6303 of title 5, United States
Code, is amended by adding at the end the following:
``(e)(1) In this subsection, the term `period of qualified non-
Federal service' means any equal period of service performed by an
individual that--
``(A) except for this subsection would not otherwise be
service performed by an employee for purposes of subsection
(a); and
``(B) was performed in a position--
``(i) the duties of which were directly related to
the duties of the position in an agency that such
individual holds; and
``(ii) which meets such other conditions as the
Office of Personnel Management shall prescribe by
regulation.
``(2) For purposes of subsection (a), the head of an agency may
deem a period of qualified non-Federal service performed by an
individual to be a period of service performed as an employee.''.
(2) Effective date.--This section shall take effect 120
days after the date of enactment of this Act and shall only
apply to an individual hired on or after that effective date.
(b) Senior Executive Service Annual Leave Enhancements.--
(1) In general.--Section 6303(a) of title 5, United States
Code, is amended--
(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 adding 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 the rate payable at GS-15,
step 10.''.
(2) Regulations.--Not later than 120 days after the date of
enactment of this Act, the Office of Personnel Management shall
prescribe regulations to carry out the amendments made by this
subsection.
(3) Effective dates.--
(A) In general.--Paragraph (1) shall take effect
120 days after the date of enactment of this Act.
(B) Regulations.--Paragraph (2) shall take effect
on the date of enactment of this Act.
SEC. 403. MODIFICATIONS TO NATIONAL SECURITY EDUCATION PROGRAM.
(a) Findings and Policies.--
(1) Findings.--Congress finds that--
(A) the United States Government actively
encourages and financially supports the training,
education, and development of many United States
citizens;
(B) as a condition of some of those supports, many
of those citizens have an obligation to seek either
compensated or uncompensated employment in the Federal
sector; and
(C) it is in the United States national interest to
maximize the return to the Nation of funds invested in
the development of such citizens by seeking to employ
them in the Federal sector.
(2) Policy.--It shall be the policy of the United States
Government to--
(A) establish procedures for ensuring that United
States citizens who have incurred service obligations
as the result of receiving financial support for
education and training from the United States
Government and have applied for Federal positions are
considered in all recruitment and hiring initiatives of
Federal departments, bureaus, agencies, and offices;
and
(B) advertise and open all Federal positions to
United States citizens who have incurred service
obligations with the United States Government as the
result of receiving financial support for education and
training from the United States Government.
(b) Fulfillment of Service Requirement if National Security
Positions Are Unavailable.-- Section 802(b)(2) of the David L. Boren
National Security Education Act of 1991 (50 U.S.C. 1902) is amended--
(1) in subparagraph (A), by striking clause (ii) and
inserting the following:
``(ii) if the recipient demonstrates to the
Secretary (in accordance with such regulations)
that no national security position in an agency
or office of the Federal Government having
national security responsibilities is
available, work in other offices or agencies of
the Federal Government or in the field of
higher education in a discipline relating to
the foreign country, foreign language, area
study, or international field of study for
which the scholarship was awarded, for a period
specified by the Secretary, which period shall
be determined in accordance with clause (i);
or''; and
(2) in subparagraph (B), by striking clause (ii) and
inserting the following:
``(ii) if the recipient demonstrates to the
Secretary (in accordance with such regulations)
that no national security position is available
upon the completion of the degree, work in
other offices or agencies of the Federal
Government or in the field of higher education
in a discipline relating to the foreign
country, foreign language, area study, or
international field of study for which the
fellowship was awarded, for a period specified
by the Secretary, which period shall be
established in accordance with clause (i);
and''.
TITLE V--FEDERAL HUMAN RESOURCES MANAGEMENT INNOVATIONS
SEC. 501. STREAMLINED PERSONNEL MANAGEMENT DEMONSTRATION PROJECTS.
Chapter 47 of title 5, United States Code, is amended--
(1) in section 4701--
(A) in subsection (a)--
(i) by striking ``(a)'';
(ii) by striking paragraph (1) and
inserting the following:
``(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:
``(5) `modification' means a significant change in 1 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 striking subsection (b) and inserting the
following:
``(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) the method of evaluating the project; 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 90 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 striking paragraph (1) and inserting
the following:
``(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:
``(4) section 7342, 7351, or 7353;
``(5) the Ethics in Government Act of 1978 (5 U.S.C.
App.);''; and
(iv) in paragraph (6) as redesignated, by
striking ``paragraph (1), (2), or (3) of this
subsection; or'' and inserting ``paragraphs (1)
through (5);'';
(D) by striking subsections (d) and (e) and
inserting the following:
``(d)(1) Unless terminated at an earlier date in accordance with
this section, each demonstration project shall terminate at the end of
the 10-year period beginning on the date on which the project takes
effect.
``(2) Before the end of the 5-year period beginning on the date on
which a demonstration project takes effect, the Office shall submit a
recommendation to Congress on whether Congress should enact legislation
to make that project permanent.
``(e) The Office may terminate a demonstration project under this
chapter if the Office 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.''; and
(E) by striking subsections (h) and (i) and
inserting the following:
``(h) Notwithstanding section 2302(e)(1), for purposes of applying
section 2302(b)(11) in a demonstration project under this chapter, the
term `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.
``(i) 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.
``(j) Upon request of the Director of the Office of Personnel
Management, agencies shall cooperate with and assist the Office in any
evaluation undertaken under subsection (i) and provide the Office with
requested information and reports relating to the conducting of
demonstration projects in their respective agencies.''.
SEC. 502. EFFECTIVE DATE.
This title shall take effect 180 days after the date of enactment
of this Act.
<all>
Introduced in Senate
Read twice and referred to the Committee on Governmental Affairs.
Committee on Governmental Affairs referred to Subcommittee on International Security, Proliferation and Federal Services.
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