SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Senior Professional Performance Act 
of 2008''.
SEC. 2. PAY PROVISIONS RELATING TO CERTAIN SENIOR-LEVEL POSITIONS.
    (a) Locality Pay.--Section 5304 of title 5, United States Code, is 
amended--
        (1) in subsection (g), by amending paragraph (2) to read as 
    follows:
        ``(2) The applicable maximum under this subsection shall be 
    level III of the Executive Schedule for--
            ``(A) positions under subparagraphs (A) and (B) of 
        subsection (h)(1); and
            ``(B) any positions under subsection (h)(1)(C) as the 
        President may determine.''; and
        (2) in subsection (h)--
            (A) in paragraph (1)--
                (i) by striking subparagraph (A);
                (ii) in subparagraph (D)--

                    (I) in clause (v), by striking ``or'' at the end;
                    (II) in clause (vi), by striking the period at the 
                end and inserting ``; or''; and
                    (III) by adding at the end the following:

                ``(vii) a position to which section 5376 applies 
            (relating to certain senior-level and scientific and 
            professional positions).''; and
                (iii) by redesignating subparagraphs (B), (C), and (D) 
            as subparagraphs (A), (B), and (C), respectively; and
            (B) in paragraph (2)(B)--
                (i) in clause (i)--

                    (I) by striking ``subparagraphs (A) through (C)'' 
                and inserting ``subparagraphs (A) and (B)''; and
                    (II) by striking ``or (vi)'' and inserting ``(vi), 
                or (vii)''; and

                (ii) in clause (ii)--

                    (I) by striking ``paragraph (1)(D)'' and inserting 
                ``paragraph (1)(C)''; and
                    (II) by striking ``or (vi)'' and inserting ``(vi), 
                or (vii)''.

    (b) Access to Higher Maximum Rate of Basic Pay.--Section 5376(b) of 
title 5, United States Code, is amended--
        (1) in paragraph (1), by striking subparagraph (B) and 
    inserting the following:
            ``(B) subject to paragraph (3), not greater than the rate 
        of basic pay payable for level III of the Executive 
        Schedule.''; and
        (2) by adding at the end the following:
        ``(3) In the case of an agency which has a performance 
    appraisal system which, as designed and applied, is certified under 
    section 5307(d) as making meaningful distinctions based on relative 
    performance, paragraph (1)(B) shall apply as if the reference to 
    `level III' were a reference to `level II'.
        ``(4) No employee may suffer a reduction in pay by reason of 
    transfer from an agency with an applicable maximum rate of pay 
    prescribed under paragraph (3) to an agency with an applicable 
    maximum rate of pay prescribed under paragraph (1)(B).''.
    (c) Authority for Employment; Appointments; Classification 
Standards.--Title 5, United States Code is amended--
        (1) in section 3104(a), in the second sentence, by striking 
    ``prescribes'' and inserting ``prescribes and publishes in such 
    form as the Director may determine'';
        (2) in section 3324(a) by striking ``the Office of Personnel 
    Management'' and inserting: ``the Director of the Office of 
    Personnel Management on the basis of qualification standards 
    developed by the agency involved in accordance with criteria 
    specified in regulations prescribed by the Director'';
        (3) in section 3325--
            (A) in subsection (a), in the second sentence, by striking 
        ``or its designee for this purpose'' and inserting the 
        following: ``on the basis of standards developed by the agency 
        involved in accordance with criteria specified in regulations 
        prescribed by the Director of the Office of Personnel 
        Management''; and
            (B) by adding at the end the following:
    ``(c) The Director of the Office of Personnel Management shall 
prescribe such regulations as may be necessary to carry out the purpose 
of this section.''; and
        (4) in section 5108(a)(2) by inserting ``published by the 
    Director of the Office of Personnel Management in such form as the 
    Director may determine'' after ``and procedures''.
    (d) Effective Date and Application.--
        (1) Effective date.--The amendments made by this section shall 
    take effect on the first day of the first pay period beginning on 
    or after the 180th day following the date of enactment of this Act.
        (2) No reductions in rates of pay.--
            (A) In general.--The amendments made by this section may 
        not result, at the time such amendments take effect, in a 
        reduction in the rate of basic pay for an individual holding a 
        position to which section 5376 of title 5, United States Code, 
        applies.
            (B) Determination of rate of pay.--For the purposes of 
        subparagraph (A), the rate of basic pay for an individual 
        described in that subparagraph shall be deemed to be the rate 
        of basic pay set for the individual under section 5376 of title 
        5, United States Code, plus any applicable locality pay paid to 
        that individual on the day before the effective date under 
        paragraph (1), subject to regulations that the Director of the 
        Office of Personnel Management may prescribe.
        (3) References to maximum rates.--Except as otherwise provided 
    by law, any reference in a provision of law to the maximum rate 
    under section 5376 of title 5, United States Code--
            (A) as provided before the effective date of the amendments 
        made by this section, shall be considered a reference to the 
        rate of basic pay for level IV of the Executive Schedule; and
            (B) as provided on or after the effective date of the 
        amendments made by this section, shall be considered a 
        reference to--
                (i) the rate of basic pay for level III of the 
            Executive Schedule; or
                (ii) if the head of the agency responsible for 
            administering the applicable pay system certifies that the 
            employees are covered by a performance appraisal system 
            meeting the certification criteria established by 
            regulation under section 5307(d), level II of the Executive 
            Schedule.
SEC. 3. LIMITATIONS ON CERTAIN PAYMENTS.
    (a) In General.--Section 5307(d) of title 5, United States Code, is 
amended--
        (1) in paragraph (2), by striking all after ``purposes of'' and 
    inserting: ``applying the limitation in the calendar year involved, 
    has a performance appraisal system certified under this subsection 
    as making, in its design and application, meaningful distinctions 
    based on relative performance.''; and
        (2) in paragraph (3)(B)--
            (A) by striking all beginning with ``An'' through ``2 
        calendar years'' and inserting ``The certification of an agency 
        performance appraisal system under this subsection shall be for 
        a period not to exceed 24 months beginning on the date of 
        certification, unless extended by the Director of the Office of 
        Personnel Management for up to 6 additional months''; and
            (B) by striking ``, for purposes of either or both of those 
        years,''.
    (b) Extension of Certification.--
        (1) Extension to 2009.--
            (A) In general.--For any certification of a performance 
        appraisal system under section 5307(d) of title 5, United 
        States Code, in effect on the date of enactment of this Act and 
        scheduled to expire at the end of calendar year 2008, the 
        Director of the Office of Personnel Management may provide that 
        such a certification shall be extended without requiring 
        additional justification by the agency.
            (B) Limitation.--The expiration of any extension under this 
        paragraph shall be not later than the later of--
                (i) June 30, 2009; or
                (ii) the first anniversary of the date of the 
            certification.
        (2) Extension to 2010.--
            (A) In general.--For any certification of a performance 
        appraisal system under section 5307(d) of title 5, United 
        States Code, in effect on the date of enactment and scheduled 
        to expire at the end of calendar year 2009, the Director of the 
        Office of Personnel Management may provide that such a 
        certification shall be extended without requiring additional 
        justification by the agency.
            (B) Limitation.--The expiration of any extension under this 
        paragraph shall be not later than the later of--
                (i) June 30, 2010; or
                (ii) the second anniversary of the date of the 
            certification.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
Senior Professional Performance Act of 2008 - Amends provisions relating to locality-based comparability payments for federal employees to exempt senior-level (SL) and scientific and professional personnel (ST) employees from limitations on total basic and comparability pay established at level III of the Executive Schedule.

Increases the rate of basic pay for certain senior-level positions to level III. Permits a further increase to level II for agencies with a performance appraisal system that has been certified as making meaningful distinctions based on relative performance. Protects employees who are transferred to an agency subject to existing pay limitations from pay reductions.

Provides that appointments to positions classified above GS-15 may be made on approval of the appointee's qualifications by the Director of the Office of Personnel Management (OPM) on the basis of qualification standards developed by the agency involved in accordance with criteria prescribed by the Director.

Makes the amendments to senior-level pay provisions effective 180 days after enactment. Prohibits a reduction in the rate of basic pay for certain senior-level positions as a result of amendments made by this Act.

Limits an agency's certification of performance appraisal systems to 24 months, with an additional extension of up to six months by the Director. Allows extensions of certifications scheduled to expire at the end of 2008 or 2009.
A bill to modify pay provisions relating to certain senior-level positions in the Federal Government, and for other purposes.