SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CBP Hiring and Retention Act of 
2016'' or the ``CBP HiRe Act''.

SEC. 2. RETENTION INCENTIVES.

    (a) In General.--Chapter 97 of title 5, United States Code, is 
amended by adding at the end the following:
``Sec. 9702. U.S. Customs and Border Protection retention incentives
    ``(a) Definitions.--In this section--
            ``(1) the term `bonus percentage rate' means the bonus 
        percentage rate for a covered CBP employee established in 
        accordance with subsection (d);
            ``(2) the term `covered CBP employee' means an employee of 
        U.S. Customs and Border Protection performing activities that 
        are critical to border security, as determined by the 
        Secretary; and
            ``(3) the term `Secretary' means the Secretary of Homeland 
        Security.
    ``(b) Authority.--The Secretary may pay a retention bonus to a 
covered CBP employee if the Secretary determines that, in the absence 
of a retention bonus, the covered CBP employee would be likely to 
leave--
            ``(1) Federal service; or
            ``(2) for a different position in the Federal service, 
        including a position in another agency or component of the 
        Department of Homeland Security.
    ``(c) Written Agreement.--
            ``(1) In general.--Payment of a retention bonus under this 
        section is contingent upon the covered CBP employee entering 
        into a written service agreement with U.S. Customs and Border 
        Protection to complete a period of employment with U.S. Customs 
        and Border Protection.
            ``(2) Terms and conditions.--A written agreement under this 
        section shall include--
                    ``(A) the length of the required service period;
                    ``(B) the amount of the bonus;
                    ``(C) the method of payment;
                    ``(D) other terms and conditions under which the 
                bonus is payable, subject to the requirements of this 
                section and regulations of the Secretary, which 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.
    ``(d) Amount.--A retention bonus under this section--
            ``(1) shall be stated as a percentage of the basic pay of 
        the covered CBP employee for the service period associated with 
        the bonus; and
            ``(2) may not exceed 25 percent of the basic pay of the 
        covered CBP employee.
    ``(e) Form of Payment.--
            ``(1) In general.--A retention bonus may be paid to a 
        covered CBP 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 written service 
        agreement.
            ``(2) Installment payments.--
                    ``(A) Calculation of installments.--An installment 
                payment is derived by multiplying the amount of basic 
                pay earned in the installment period by a percentage 
                not to exceed the bonus percentage rate established for 
                the covered CBP employee.
                    ``(B) Lump sum final payment.--If the installment 
                payment percentage established for the covered CBP 
                employee under subparagraph (A) is less than the bonus 
                percentage rate established for the covered CBP 
                employee, the accrued but unpaid portion of the bonus 
                is payable as part of the final installment payment to 
                the covered CBP employee after completion of the full 
                service period under the terms of the written service 
                agreement.
    ``(f) Exclusion From Basic Pay.--A retention bonus under this 
section is not part of the basic pay of an employee for any purpose.''.
    (b) Technical and Conforming Amendment.--The table of sections for 
chapter 97 of title 5, United States Code, is amended by adding at the 
end the following:

``9702. U.S. Customs and Border Protection retention incentives.''.

SEC. 3. PILOT PROGRAMS FOR U.S. CUSTOMS AND BORDER PROTECTION.

    (a) Definitions.--In this section--
            (1) the term ``covered area'' means a geographic area that 
        the Secretary determines--
                    (A) is in a remote location; or
                    (B) is an area for which it is difficult to find 
                employees willing to accept the area as a permanent 
                duty station;
            (2) the term ``covered CBP employee'' has the meaning given 
        that term in section 9702 of title 5, United States Code, as 
        added by section 2;
            (3) the term ``Department'' means the Department of 
        Homeland Security; and
            (4) the term ``Secretary'' means the Secretary of Homeland 
        Security.
    (b) Special Rates of Pay.--
            (1) Authority.--The Secretary may establish one or more 
        special rates of pay for covered CBP employees whose permanent 
        duty station is located in a covered area.
            (2) Maximum amount.--A special rate of pay established 
        under this subsection may not provide a rate of basic pay for 
        any covered CBP employee that exceeds 125 percent of the 
        otherwise applicable rate of basic pay for the covered CBP 
        employee.
            (3) Sunset.--
                    (A) In general.--Subject to subparagraph (B), on 
                and after the first day of the first pay period that 
                begins more than 2 years after the date of enactment of 
                this Act, the Secretary may not pay a covered CBP 
                employee under a special rate of pay established under 
                this subsection.
                    (B) Extension.--If the Secretary determines the 
                program of special rates of pay under this subsection 
                is performing satisfactorily, the Secretary may extend 
                the period during which the Secretary may pay covered 
                CBP employees under such special rates of pay through 
                the day before the first pay period that begins more 
                than 4 years after the date of enactment of this Act.
            (4) Savings provision.--For any covered CBP employee being 
        paid at a special rate of pay established under this subsection 
        on the day before the date the pilot program terminates under 
        paragraph (3), effective on the date the pilot program 
        terminates under paragraph (3) the rate of pay for the covered 
        CBP employee shall be the rate of pay that would have been in 
        effect for the covered CBP employee had this section never been 
        enacted, including any periodic step-increase or other 
        adjustment that would have taken effect if the covered CBP 
        employee had not been paid at a special rate of pay.
    (c) Limitation on Use of Polygraphs.--
            (1) In general.--Subject to paragraph (2), during the 1-
        year period beginning on the date of enactment of this Act, if 
        an applicant for a position in U.S. Customs and Border 
        Protection does not successfully complete a polygraph 
        examination required for appointment to that position--
                    (A) U.S. Customs and Border Protection may not 
                disclose the results of the polygraph examination to 
                any other Federal agency or any other agency or 
                component of the Department; and
                    (B) another Federal agency or another agency or 
                component of the Department may not use the results of 
                the polygraph examination, in whole or in part, in 
                determining whether to appoint the individual to a 
                position in the agency or component.
            (2) Extension.--If the Secretary determines that the 
        limitation on the use of polygraphs under paragraph (1) is 
        performing satisfactorily, the Secretary may extend the 
        limitation until the end of the 2-year period beginning on the 
        date of enactment of this Act.
            (3) Disclosures.--
                    (A) In general.--The Secretary shall provide each 
                applicant for a position in U.S. Customs and Border 
                Protection who will be required to successfully 
                complete a polygraph examination before appointment to 
                the position a list of actions or conduct of, or events 
                relating to, the applicant that could disqualify the 
                applicant from being appointed to the position.
                    (B) List requirements.--When providing the list 
                required under subparagraph (A), the Secretary shall--
                            (i) provide applicants as complete a list 
                        as is possible of potential disqualifying 
                        actions, conduct, or events; and
                            (ii) clearly inform all applicants that the 
                        list provided under subparagraph (A) does not 
                        constitute the complete list of potential 
                        disqualifying actions, conduct, or events.
            (4) Use of polygraphs.--Paragraph (1) shall not--
                    (A) restrict the authority of U.S. Customs and 
                Border Protection to report or refer an admission of 
                criminal activity made by an applicant during a 
                polygraph examination;
                    (B) limit the authority of U.S. Customs and Border 
                Protection to use the results of a polygraph 
                examination administered as a requirement for 
                appointment to a position in U.S. Customs and Border 
                Protection, in whole or in part, in determining whether 
                to appoint the individual to the position; or
                    (C) limit the authority of another Federal agency 
                or another agency or component of the Department to use 
                the results of a polygraph examination administered to 
                an individual by a Federal agency other than U.S. 
                Customs and Border Protection, in whole or in part, in 
                determining whether to appoint the individual to a 
                position in the agency or component.
CBP Hiring and Retention Act of 2016 or the CBP HiRe Act This bill authorizes the Department of Homeland Security (DHS) to pay a retention bonus to U.S. Customs and Border Protection (CBP) employees performing activities that are critical to border security upon determining that such an employee would otherwise likely leave federal service or leave for a different position. A retention bonus service agreement shall include the length of required service and the amount and method of payment of the bonus. DHS may pay a special rate of pay (up to 125% of basic pay) to such CBP employees whose permanent duty stations are located in remote locations or other geographic areas for which finding employees is difficult. Such special pay authority terminates after two years but may be extended for another two years. If an applicant for a CBP position does not successfully complete a required polygraph examination, the CBP may not disclose the polygraph results to any other federal agency or DHS component and such other agency or component may not use the results in determining whether to appoint such individual. Such limitations terminate after one year but may be extended for another year. DHS shall provide each CBP applicant who will be required to successfully complete a polygraph examination before his or her appointment a list of disqualifying actions or conduct of, or events relating to, the applicant.
CBP HiRe Act