SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Law Enforcement Officers Pay 
Equity and Reform Act of 2002''.

SEC. 2. LIMITATION ON PREMIUM PAY.

    (a) In General.--Section 5547 of title 5, United States Code, is 
amended--
            (1) in subsection (a), by striking ``5545a,'';
            (2) in subsection (c), by striking ``or 5545a''; and
            (3) in subsection (d), by striking the period and inserting 
        ``or a criminal investigator who is paid availability pay under 
        section 5545a.''.
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of section 1114 of the National 
Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 
Stat. 1239).

SEC. 3. SEPARATE PAY, EVALUATION, AND PROMOTION SYSTEM FOR FEDERAL LAW 
              ENFORCEMENT OFFICERS.

    (a) Study.--Not later than 6 months after the date of the enactment 
of this Act, the Office of Personnel Management shall study and submit 
to Congress a report which shall contain its findings and 
recommendations regarding the need for, and the potential benefits to 
be derived from, the establishment of a separate pay, evaluation, and 
promotion system for Federal law enforcement officers. In carrying out 
this subsection, the Office of Personnel Management shall take into 
account the findings and recommendations contained in the September 
1993 report of the Office entitled ``A Plan to Establish a New Pay and 
Job Evaluation System for Federal Law Enforcement Officers''.
    (b) Demonstration Project.--
            (1) In general.--If, after completing its report under 
        subsection (a), the Office of Personnel Management considers it 
        to be appropriate, the Office shall implement, within 12 months 
        after the date of the enactment of this Act, a demonstration 
        project to determine whether a separate system for Federal law 
        enforcement officers (as described in subsection (a)) would 
        result in improved Federal personnel management.
            (2) Applicable provisions.--Any demonstration project under 
        this subsection shall be conducted in accordance with the 
        provisions of chapter 47 of title 5, United States Code, except 
        that a project under this subsection shall not be taken into 
        account for purposes of the numerical limitation under section 
        4703(d)(2) of such title.
            (3) Permanent changes.--Not later than 6 months before the 
        demonstration project's scheduled termination date, the Office 
        of Personnel Management shall submit to Congress--
                    (A) its evaluation of the system tested under the 
                demonstration project; and
                    (B) recommendations as to whether or not that 
                system (or any aspects of that system) should be 
                continued or extended to other Federal law enforcement 
                officers.
    (c) Federal Law Enforcement Officer Defined.--For purposes of this 
section, the term ``Federal law enforcement officer'' means a law 
enforcement officer as defined by section 8331 or 8401 of title 5, 
United States Code.

SEC. 4. REPORT ON FEDERAL LAW ENFORCEMENT OFFICERS.

    (a) In General.--Not later than 6 months after the date of 
enactment of this Act, the Office of Personnel Management shall submit 
a report to Congress on the definition of a Federal law enforcement 
officer for purposes of pay and benefits under the provisions of title 
5, United States Code.
    (b) Recommendations.--The report under subsection (a) shall include 
recommendations of applying pay and benefit provisions (including 
retirement under chapters 83 and 84 of title 5, United States Code, and 
premium pay under subchapter V of chapter 55 of that title) to Federal 
employees who are not defined as law enforcement officers under those 
provisions.

SEC. 5. EMPLOYEE EXCHANGE PROGRAM BETWEEN DEPARTMENT EMPLOYEES AND 
              EMPLOYEES OF STATE AND LOCAL GOVERNMENTS.

    (a) Definitions.--In this section:
            (1) Employing agency.--The term ``employing agency'' means 
        the Federal, State, or local government agency with which the 
        participating employee was employed before an assignment under 
        the Program.
            (2) Participating employee.--The term ``participating 
        employee'' means an employee who is participating in the 
        Program.
            (3) Program.--The term ``Program'' means the employee 
        exchange program established under subsection (b).
    (b) Establishment.--The President shall establish an employee 
exchange program between Federal agencies that perform law enforcement 
functions and agencies of State and local governments that perform law 
enforcement functions.
    (c) Conduct of Program.--The Program shall be conducted in 
accordance with subchapter VI of chapter 33 of title 5, United States 
Code.
    (d) Qualifications.--An employee of an employing agency who 
performs law enforcement functions may be selected to participate in 
the Program if the employee--
            (1) has been employed by that employing agency for a period 
        of more than 3 years;
            (2) has had appropriate training or experience to perform 
        the work required by the assignment;
            (3) has had an overall rating of satisfactory or higher on 
        performance appraisals from the employing agency during the 3-
        year period before being assigned to another agency under this 
        section; and
            (4) agrees to return to the employing agency after 
        completing the assignment for a period not less than the length 
        of the assignment.
    (d) Written Agreement.--An employee shall enter into a written 
agreement regarding the terms and conditions of the assignment before 
beginning the assignment with another agency.
Federal Law Enforcement Officers Pay Equity and Reform Act of 2002 - Excludes availability pay for Federal criminal investigators from premium pay limitations.Requires a study by the Office of Personnel Management (OPM) regarding the need for, and potential benefits of, the establishment of a separate pay, evaluation, and promotion system for Federal law enforcement officers. Authorizes OPM to implement a demonstration project for such a system.Directs OPM to report to Congress on the definition of a Federal law enforcement officer for pay and benefit purposes. Requires such report to include recommendations of applying pay and benefit provisions (including retirement and premium pay provisions) to Federal employees who are not defined as law enforcement officers under those provisions.Directs the President to establish an employee exchange program between Federal agencies that perform law enforcement functions and State and local government agencies that perform such functions.
A bill to amend chapter 55 of title 5, United States Code, to exclude availability pay for certain Federal law enforcement officers from the limitation on premium pay, and for other purposes.