To provide for reform of the Senior Executive Service, adjustment in the rates of pay of certain positions, and for other purposes.

SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Senior Executive 
Service Reform Act of 2003''.
    (b) References.--Except as otherwise expressly provided, whenever 
in this title an amendment is expressed in terms of an amendment to a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of title 5, United States Code.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; references; table of contents.
Sec. 2. Amendments relating to basic pay.
Sec. 3. Locality pay adjustment limitation.
Sec. 4. Annual leave enhancements.
Sec. 5. Expanded Senior Executive Service limited appointment 
                            authority.
Sec. 6. Effective date.

SEC. 2. AMENDMENTS RELATING TO BASIC PAY.

    (a) Basic Pay for Senior Executive Service Positions.--
            (1) Pay range.--Section 5382 is amended to read as follows:
``Sec. 5382. Range in rates of pay for the senior executive service
    ``Each senior executive is entitled to basic pay at the rate 
determined for such senior executive under section 5383, except that no 
rate so determined may be--
            ``(1) greater than the rate of basic pay for level III of 
        the Executive Schedule, or
            ``(2) less than the minimum rate of basic pay payable under 
        section 5376.''.
            (2) Setting individual rates.--Subsection (a) of section 
        5383 is amended to read as follows:
    ``(a)(1) Subject to section 5382, each appointing authority shall 
determine the rate of basic pay which shall be paid to each senior 
executive under such appointing authority.
    ``(2) A determination under this subsection shall, with respect to 
any senior executive, be made based on such senior executive's 
experience and capabilities, the responsibilities of the position such 
senior executive holds, and such other criteria as the Office of 
Personnel Management may by regulation prescribe.''.
            (3) Limitation on adjustments.--Subsection (c) of section 
        5383 is amended by striking ``Except'' and all that follows 
        through ``title,'' and inserting ``Except as otherwise provided 
        in regulations under section 5385,''.
    (b) Basic Pay for Other Positions.--Sections 5372(b)(1)(C), 
5372a(b)(1), and 5376(b)(1)(B) are amended by striking ``level IV'' 
each place it appears and inserting ``level III''.
    (c) Coordination Provisions.--
            (1) In general.--For purposes of determining the rate of 
        compensation for any position described in paragraph (2), the 
        President may, after the effective date set forth in section 6, 
        continue to adjust rates of basic pay for the Senior Executive 
        Service to the same extent and in the same manner as if the 
        amendments made by this section had not been enacted.
            (2) Applicability.--This subsection applies with respect to 
        any position the rate of compensation for which is set, by or 
        under any provision of law enacted before the effective date 
        set forth in section 6, by reference to a level or rate of pay 
        for the Senior Executive Service.
            (3) Special rules.--The following special rules shall apply 
        for purposes of carrying out this subsection:
                    (A) Section 5382(b) of title 5, United States Code, 
                as last in effect before the effective date specified 
                in section 6, shall be deemed to have been amended by 
                striking ``level IV'' and inserting ``level III''.
                    (B)(i) Notwithstanding any other provision of law, 
                after the effective date specified in section 6, the 
                President may, on his own initiative, provide for such 
                comparability payments for the Senior Executive Service 
                as he considers necessary in order to carry out the 
                purposes described in paragraph (1).
                    (ii) For purposes of this subparagraph, section 
                5304(g)(2) of such title 5 shall, to the extent that it 
                relates to the Senior Executive Service, be deemed to 
                have been amended by striking ``level III'' and 
                inserting ``level II''.
            (4) Limited effect.--Any adjusted rates of pay and any 
        comparability payments fixed for the Senior Executive Service 
        under this subsection shall not have any force or effect except 
        as provided in paragraph (1) or (3)(B).
    (d) Technical and Conforming Amendments.--
            (1) Limitations on pay fixed by administrative action.--
                    (A) Section 5306.--Section 5306(d) is amended by 
                striking the period and inserting ``, including under 
                section 5372, 5376, or 5383.''.
                    (B) Section 5373.--Section 5373(a) is amended--
                            (i) by striking ``or'' at the end of 
                        paragraph (3);
                            (ii) by striking paragraph (4) and 
                        inserting the following:
            ``(4) section 4802, 5372, 5376, or 5383; or''; and
                            (iii) by redesignating the second paragraph 
                        (4) (as added by section 10702(c)(3) of Public 
                        Law 107-171 (116 Stat. 517)) as paragraph (5).
            (2) References to section 5382.--
                    (A) The analysis for chapter 53 is amended by 
                striking the item relating to section 5382 and 
                inserting the following:

``5382. Range in rates of pay for the senior executive service.''.
                    (B) Section 3161(d)(2) is amended by striking 
                ``established'' and inserting ``allowable''.
                    (C) Sections 4507(e)(1) and 5384(a)(2) are each 
                amended by striking ``5382'' and inserting ``5383''.

SEC. 3. LOCALITY PAY ADJUSTMENT LIMITATION.

    Paragraph (2) of section 5304(g) is amended to read as follows:
    ``(2) The applicable maximum under this subsection shall--
            ``(A) for any positions under subparagraphs (A)-(E) of 
        subsection (h)(1), be level II of the Executive Schedule; and
            ``(B) for any positions under subsection (h)(1)(F) which 
        the President may determine, be level III of the Executive 
        Schedule.''.

SEC. 4. ANNUAL LEAVE ENHANCEMENTS.

    (a) In General.--Section 6303 is amended by adding at the end the 
following:
    ``(e)(1) Notwithstanding any provision of subsection (a), the rate 
of accrual of annual leave in the case of an employee under paragraph 
(2) is one day for each full biweekly pay period.
    ``(2) This subsection applies to an employee in a position paid 
under section 5376 or 5383, or for an employee in an equivalent 
category of positions (as determined under regulations of the Office of 
Personnel Management) for which the minimum rate of basic pay is not 
less than 120 percent of the minimum rate of basic pay payable for GS-
15 of the General Schedule.''.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply with respect to pay periods beginning on or after the effective 
date set forth in section 6.

SEC. 5. EXPANDED SENIOR EXECUTIVE SERVICE LIMITED APPOINTMENT 
              AUTHORITY.

    (a) Definitions.--Section 3132(a) is amended--
            (1) by striking paragraphs (5) and (6), and inserting the 
        following:
            ``(5) `limited term appointee' means an individual 
        appointed under a nonrenewable appointment to a Senior 
        Executive Service position for a term fixed in accordance with 
        section 3394(d) and the duties of which position will expire at 
        the end of such term;
            ``(6) `limited emergency appointee' means an individual 
        appointed under a nonrenewable appointment to a Senior 
        Executive Service position, established to meet a bona fide, 
        unanticipated, urgent need, for a term fixed in accordance with 
        section 3394(c);''; and
            (2) by striking paragraph (8) and inserting the following:
            ``(8) `career reserved position' means a position which is 
        designated under subsection (b) and which may be filled either 
        by--
                    ``(A) a career appointee;
                    ``(B) a limited term appointee or limited emergency 
                appointee who--
                            ``(i) is appointed to such position under 
                        section 3394; and
                            ``(ii) immediately before entering such 
                        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); or
                    ``(C) a limited term appointee or limited emergency 
                appointee who is reassigned to such position under 
                section 3395(b); and''.
    (b) Duration of Limited Appointments.--Section 3394 is amended by 
adding at the end the following:
    ``(c)(1) A limited emergency appointee may be appointed for a 
period of not to exceed 1 year.
    ``(2) If the exigencies of the public business so require, such 
appointment may be extended for not to exceed 1 year.
    ``(3) The authorities under paragraphs (1) and (2) shall be 
available subject to section 3395(c).
    ``(d)(1) A limited term appointee may be appointed for a period of 
not to exceed 4 years.
    ``(2) If the exigencies of the public business so require, such 
appointment may be extended for not to exceed 2 years.
    ``(3) The authorities under paragraphs (1) and (2) shall be 
available subject to section 3395(c).''.
    (c) Reassignment Within the Senior Executive Service.--
            (1) In general.--Subsection (b) of section 3395 is amended 
        to read as follows:
    ``(b)(1)(A) Notwithstanding section 3394(b), a limited emergency 
appointee may be reassigned to another Senior Executive Service 
position in the same agency established to meet a bona fide, 
unanticipated, urgent need, except that the appointee may not serve in 
1 or more positions in such agency under such appointment in excess of 
the term allowable under section 3394(c) (1) and (2).
    ``(B) An individual may not be reassigned under this paragraph to a 
career reserved position without the prior approval of the exercise of 
that reassignment authority by the Office of Personnel Management.
    ``(2)(A) Notwithstanding section 3394(b), a limited term appointee 
may be reassigned to another Senior Executive Service position in the 
same agency the duties of which will expire at the end of that 
individual's term, except that the appointee may not serve in 1 or more 
positions in the agency under such appointment in excess of the term 
allowable under section 3394(d) (1) and (2).
    ``(B) An individual may not be reassigned under this paragraph to a 
career reserved position without the prior approval of the exercise of 
that reassignment authority by the Office of Personnel Management.''.
            (2) Limitation on aggregate service.--Section 3395(c) is 
        amended--
                    (A) by striking ``48 months'' and inserting ``10 
                years''; and
                    (B) by striking ``36 months'' and inserting ``7 
                years''.
    (d) Reemployment Rights for Certain Appointees in the Senior 
Executive Service.--
            (1) In general.--Section 3594 is amended by redesignating 
        subsection (c) as subsection (d) and by inserting after 
        subsection (b) the following:
    ``(c) A limited emergency appointee or limited term appointee who 
was appointed from a civil service position held under a career or 
career-conditional appointment (or an appointment of equivalent tenure, 
as determined by the Office) and who, for reasons other than 
misconduct, neglect of duty, or malfeasance, is removed from the Senior 
Executive Service shall be entitled to be placed in a civil service 
position (other than a Senior Executive Service position) in any 
agency.''.
            (2) Conforming amendments.--Section 3594(d) (as so 
        redesignated by paragraph (1)) is amended--
                    (A) by striking ``subsections (a) and (b)'' and 
                inserting ``subsections (a), (b), and (c)''; and
                    (B) by adding at the end the following:
    ``(3) A limited emergency appointee or limited term appointee 
described in subsection (c) shall be entitled to the same rights under 
this subsection as a career appointee described in subsection (a).''.
    (e) Applicability; Savings Provision; Transition Rule.--
            (1) Applicability.--The amendments made by this section 
        shall apply with respect to appointments made on or after the 
        effective date specified in section 6.
            (2) Savings provisions.--Appointments made prior to the 
        effective date specified in section 6 shall continue to be 
        governed by provisions of title 5, United States Code, applied 
        as if this section had not been enacted.
            (3) Transition rule.--
                    (A) In general.--Service as a limited term 
                appointee or limited emergency appointee performed 
                before the effective date specified in section 6 shall 
                not be taken into account for purposes of applying 
                section 3395(c) of title 5, United States Code, as 
                amended by this section.
                    (B) Definitions.--For purposes of this paragraph, 
                the terms ``limited term appointee'' and ``limited 
                emergency appointee'' have the meanings set forth in 
                section 3132(a) of such title 5, as in effect before 
                such effective date.

SEC. 6. EFFECTIVE DATE.

    The amendments made by this Act shall take effect 90 days after the 
date of the enactment of this Act.

Summary: Senior Executive Service Reform Act of 2003 - Prohibits pay rates for members of the Senior Executive Service (SES) from being: (1) greater than that for level III of the Executive Schedule (ES). Or (2) less the minimum rate of basic pay for senior level positions classified above GS-15. Requires each appointing authority to determine such rates based on the executive's experience and capabilities, responsibilities of the position, and such other criteria as the Office of Personnel Management may prescribe. Provides pay increases for administrative law judges, Contract Appeals Board members, and certain senior level positions by raising the ES level on which their pay is based. Authorizes the President to provide for such SES comparability pay adjustments as necessary to conform to such increased rates. Establishes as the maximum annual rate of pay, including comparability pay adjustments: (1) ES level II for SES positions, including positions in the Federal Bureau of Investigation and the Drug Enforcement Administration. And (2) ES level III for Federal positions not covered by the General Schedule for which the rate of pay is no more than the ES level IV rate. Provides one day of annual leave for each full biweekly pay period for positions classified above GS-15, senior executives, and employees for which the minimum rate of basic pay is not less than 120 percent of the GS-15 rate. Limits the duration of limited emergency appointments to one year and of limited term appointments to four years, allowing extensions if exigencies of the public business so require. Outlines reassignment authority for such employees. Increases limits on aggregate service. Provides reemployment rights.