SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Service Scholarship Act of 
1993''.

SEC. 2. PUBLIC SERVICE SCHOLARSHIP PROGRAM.

    (a) In General.--(1) Subpart B of part III of title 5, United 
States Code, is amended by adding after chapter 35 the following:

            ``CHAPTER 36--PUBLIC SERVICE SCHOLARSHIP PROGRAM

``Sec.
``3601. Definition.
``3602. Establishment.
``3603. Identification of candidates.
``3604. Scholarship agreements.
``3605. Scholarship payments.
``3606. Regulations.
``3607. Reports.
``Sec. 3601. Definition
    ``For the purpose of this chapter, the term `agency' means an 
Executive agency.
``Sec. 3602. Establishment
    ``The Office of Personnel Management shall establish a program, to 
be known as the Public Service Scholarship Program, under which 
scholarships may be awarded to outstanding students in accordance with 
this chapter.
``Sec. 3603. Identification of candidates
    ``(a) The Office of Personnel Management may, without regard to any 
provision of law requiring competitive bidding, enter into a contract 
with 1 or more not-for-profit, non-government organizations to identify 
candidates for the Public Service Scholarship Program.
    ``(b) Candidates for the Public Service Scholarship Program--
            ``(1) shall be identified on the basis of--
                    ``(A) academic excellence and a commitment to 
                public service or to a field of endeavor useful to the 
                Government; and
                    ``(B) geographic diversity;
            ``(2) shall be identified without regard to race, color, 
        religion, sex, national origin, marital status, age, disabling 
        condition, or political party or affiliation; and
            ``(3) shall not be disqualified by reason of already being 
        employed by the Government.
    ``(c) Each contract referred to in subsection (a) shall contain 
provisions under which the organization involved shall be required to 
permit the Office of Personnel Management and representatives of the 
General Accounting Office to examine such records of the organization 
as may be necessary to carry out the purposes of this chapter.
``Sec. 3604. Scholarship agreements
    ``(a) An agency may select, from among candidates identified under 
section 3603, individuals to receive scholarships under the Public 
Service Scholarship Program.
    ``(b) The agency and each individual so selected shall enter into a 
written agreement which shall include, subject to such requirements as 
the Office of Personnel Management may by regulation prescribe, 
provisions under which--
            ``(1) the agency shall award the scholarship to help defray 
        the costs incurred by such individual in pursuing a 
        baccalaureate or post-baccalaureate degree, as a full-time 
        student, in an academic program which is not less than 1 and 
        not more than 4 academic years in duration, at an educational 
        institution which is authorized to grant such degree;
            ``(2) the individual shall be required to maintain an 
        acceptable academic standing (as defined in the agreement), and 
        to provide to the agency such certifications from the 
        educational institution as the agency may require relating to 
        the individual's attendance and academic standing;
            ``(3) after successfully completing the requirements for 
        the degree, the individual shall accept, if offered within such 
        time as shall be specified in the agreement, an appointment to 
        a full-time position that is commensurate with the individual's 
        academic degree and experience, and that is--
                    ``(A) in the excepted service, if the individual 
                has not previously acquired competitive status, with 
                the right, after successful completion of 2 years of 
                service and such other requirements as the Office may 
                prescribe, to be appointed to a position in the 
                competitive service, notwithstanding subchapter I of 
                chapter 33; or
                    ``(B) in the competitive service, if the individual 
                has previously acquired competitive status;
            ``(4) if appointed under paragraph (3), the individual 
        shall serve for 18 months for each complete academic year (as 
        well as the pro rata equivalent for any semester or other 
        portion of an academic year in excess of 1 or more complete 
        academic years) for which a scholarship was provided; and
            ``(5) the individual agrees to repay to the agency the full 
        amount in scholarships paid to or on behalf of such individual 
        under this chapter if the individual--
                    ``(A) fails to maintain an acceptable academic 
                standing or to satisfactorily complete the requirements 
                for the degree involved; or
                    ``(B) if offered a position in accordance with 
                paragraph (3), fails to satisfy the requirement under 
                paragraph (4), unless that failure is due to an 
                involuntary separation other than for cause.
    ``(c) If, in the event of a failure described in paragraph (5)(A) 
or (B), the individual does not repay the amount required under the 
agreement, a sum equal to the amount outstanding shall be recoverable 
by the Government from the individual (or such individual's estate, if 
applicable) by--
            ``(1) setoff against accrued pay, compensation, amount of 
        retirement credit, or other amount due the employee from the 
        Government; and
            ``(2) any other method provided by law for the recovery of 
        amounts owing to the Government.
The head of the agency concerned may waive, in whole or in part, a 
right of recovery under this chapter if it is shown that recovery would 
be against equity and good conscience or against the public interest.
    ``(d)(1) An agency and an individual who have entered into an 
agreement under this section may, by mutual agreement, modify or 
terminate the agreement at any time.
    ``(2) Nothing in this chapter shall be considered to require an 
agency to offer a position to a scholarship recipient. However, if the 
agency does not make such an offer within the time specified in the 
agreement, the agreement shall be considered terminated.
    ``(3) An agency may agree to allow the individual to complete all 
or part of the period of service required under subsection (b)(4) as an 
employee of another agency. The agreement between the agencies may 
include provisions under which the receiving agency shall reimburse the 
other agency for an amount not to exceed the total amount in 
scholarships paid by such agency to or on behalf of the individual 
involved.
``Sec. 3605. Scholarship payments
    ``(a) The Office of Personnel Management shall determine the 
maximum amount that may be paid as a scholarship under this chapter, on 
the basis of average costs at public and private educational 
institutions, covering tuition and fees, books, appropriate living 
expenses, and any estimated tax liability for such scholarship. The 
amount may vary based on the level of the degree being sought. The 
Office may revise the maximum amount from time to time, as the Office 
determines appropriate.
    ``(b)(1) Agencies may make scholarship payments from the 
appropriation, fund, or account that is available to pay salaries of 
employees of the activity in which it is expected that the recipient of 
the scholarship assistance will be employed.
    ``(2) There are authorized to be appropriated to the Office such 
sums as may be necessary to permit the Office to reimburse agencies for 
scholarship payments under this chapter, or for portions of such 
payments, in order to encourage agencies to make use of the Public 
Service Scholarship Program.
``Sec. 3606. Regulations
    ``The Office of Personnel Management may prescribe regulations for 
the administration of this chapter.
``Sec. 3607. Reports
    ``The Office of Personnel Management shall prepare and submit to 
Congress each year a report on the operation of the Public Service 
Scholarship Program.''.
    (2) The table of chapters for part III of title 5, United States 
Code, is amended by adding after the item relating to chapter 35 the 
following:

``36. Public Service Scholarship Program....................    3601''.
    (b) Effective Date.--The amendments made by this section shall be 
effective as of the date of the enactment of this Act.

SEC. 3. AMENDMENT RELATING TO STUDENT LOAN REPAYMENTS.

    Section 5379 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(h) At the request of an agency head, the President may authorize 
the application of the preceding provisions of this section (excluding 
subsection (a)(2)) with respect to 1 or more categories of employees 
within such agency, described in subsection (a)(2), who would not 
otherwise be eligible for benefits under this section.''.
Public Service Scholarship Act of 1993 - Directs the Office of Personnel Management to establish the Public Service Scholarship Program under which agencies may award scholarships to outstanding students pursuing a college degree in return for a commitment by them to accept employment with the agencies for a specified period of service. 
Authorizes appropriations. 
Amends Federal civil service law concerning student loan repayments to allow the President, upon the request of an agency head, to authorize the application of such law with respect to certain categories of agency employees currently ineligible for repayment benefits.
Public Service Scholarship Act of 1993