A bill 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.

    This Act may be cited as the ``Senior Executive Service Reform Act 
of 2003''.

SEC. 2. LOCALITY PAY ADJUSTMENT LIMITATION.

    Section 5304(g) of title 5, United States Code, is amended--
            (1) in paragraph (2)(A), by striking ``subparagraphs (A) to 
        (E)'' and inserting ``subparagraphs (A), (D), and (E)''; and
            (2) by adding at the end the following:
    ``(3) The applicable maximum under this subsection shall be level 
II of the Executive Schedule for positions under subsection (h)(1) (B) 
and (C).''.

SEC. 3. RATES OF PAY FOR SENIOR EXECUTIVE SERVICE.

    (a) In General.--Chapter 53 of title 5, United States Code, is 
amended--
            (1) by striking section 5382 and inserting the following:
``Sec. 5382. Establishment of rates of pay for the Senior Executive 
              Service
    ``(a) Subject to regulations prescribed by the Office of Personnel 
Management, there shall be established a range of rates of basic pay 
for the Senior Executive Service, and each senior executive shall be 
paid at 1 of the rates within the range, based on individual 
performance, contribution to the agency's performance, or both.
    ``(b) The lowest rate of the range shall not be less than the 
minimum rate of basic pay payable under section 5376, and the highest 
rate shall not exceed the rate for level III of the Executive Schedule. 
Comparability payments under section 5304 or 5304a may be paid in 
addition to the highest rate under this subsection.
    ``(c) The payment of the rates under this section shall not be 
subject to the pay limitation of section 5306(e) or 5373.''.
    (b) Technical and Conforming Amendments.--
            (1) Table of sections.--The table of sections for chapter 
        53 of title 5, United States Code, is amended by striking the 
        item relating to section 5382 and inserting the following:

``5382. Establishment of rates of pay for the Senior Executive 
                            Service.''.
            (2) Setting and adjustment of senior executive service 
        pay.--Section 5383 of title 5, United States Code, is amended--
                    (A) in subsection (a), by striking ``which of the 
                rates established under section 5382 of this title'' 
                and inserting ``which of the rates within the range 
                established under section 5382''; and
                    (B) in subsection (c), by striking ``for any pay 
                adjustment under section 5382 of this title'' and 
                inserting ``as provided in regulations prescribed by 
                the Office under section 5385''.
            (3) Limitations on pay fixed by administrative actions.--
        Chapter 53 of title 5, United States Code, is amended--
                    (A) in section 5306(e)--
                            (i) by inserting ``(1)'' after ``(e)''; and
                            (ii) by adding at the end the following:
    ``(2) This subsection shall not apply to any authority under 
section 5376 or 5382.''; and
                    (B) in section 5373(a), by striking paragraph (4) 
                and inserting the following:
            ``(4) section 4802, 5376, or 5382.''.

SEC. 4. RATES OF PAY FOR ADMINISTRATIVE LAW JUDGES.

    Section 5372(b)(1)(C) of title 5, United States Code, is amended--
            (1) by striking ``level IV'' each place it appears and 
        inserting ``level III''; and
            (2) by adding after the period the following: 
        ``Comparability payments under section 5304 or 5304a may be 
        paid in addition to the highest rate under this 
        subparagraph.''.

SEC. 5. RATES OF PAY FOR CONTRACT APPEALS BOARD MEMBERS.

    Section 5372a of title 5, United States Code, is amended--
            (1) in subsection (b)(1), by striking ``level IV'' and 
        inserting ``level III''; and
            (2) by redesignating subsection (c) as subsection (d) and 
        inserting after subsection (b) the following:
    ``(c) Comparability payments under section 5304 or 5304a may be 
paid in addition to the rates under subsection (b).''.

SEC. 6. RATES OF PAY FOR CERTAIN SENIOR LEVEL POSITIONS.

    Section 5376(b)(1) of title 5, United States Code, is amended--
            (1) in subparagraph (B), by striking ``level IV'' and 
        inserting ``level III''; and
            (2) by adding after the sentence following subparagraph (B) 
        the following: ``Comparability payments under section 5304 or 
        5304a may be paid in addition to the highest rate under 
        subparagraph (B).''.

SEC. 7. EXPANDED SENIOR EXECUTIVE SERVICE LIMITED APPOINTMENT 
              AUTHORITY.

    (a) Definitions.--Section 3132 of title 5, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (5), and inserting the 
                following:
            ``(5) `limited appointee' means an individual appointed to 
        a Senior Executive Service position to meet a short-term 
        staffing need, as determined by the Office of Personnel 
        Management;'';
                    (B) by striking paragraph (6) and redesignating 
                paragraphs (7), (8), and (9) as paragraphs (6), (7), 
                and (8), respectively; and
                    (C) by amending paragraph (7) as so redesignated to 
                read as follows:
            ``(7) `career reserved position' means a position 
        designated under subsection (b) which may be filled only by--
                    ``(A) a career appointee; or
                    ``(B) a limited appointee who, immediately before 
                entering the career reserved 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 of 
                Personnel Management), or whose limited appointment to 
                a career reserved position is approved in advance by 
                the Office of Personnel Management;''; and
            (2) in subsection (b)(1), by striking ``For the purpose of 
        paragraph (8) of subsection (a) of this section,'' and 
        inserting ``For the purpose of paragraph (7) of subsection 
        (a),''.
    (b) Noncareer and Limited Appointments.--Section 3394 of title 5, 
United States Code, is amended to read as follows:
``Sec. 3394. Noncareer and limited appointments
    ``(a) Each noncareer appointee and limited appointee shall meet the 
qualifications of the position to which appointed, as determined in 
writing by the appointing authority.
    ``(b) An individual may not be appointed as a limited appointee 
without the prior approval of the exercise of such appointment 
authority by the Office of Personnel Management.
    ``(c) The duration of a limited appointment shall be--
            ``(1) 4 years or less to a Senior Executive Service 
        position the duties of which will expire at the end of such 
        term; or
            ``(2) 12 months or less to a Senior Executive Service 
        position the duties of which are continuing.
    ``(d) In rare circumstances, the Office of Personnel Management may 
authorize an extension of a limited appointment under--
            ``(1) subsection (c)(1) for a period not to exceed 2 years; 
        and
            ``(2) subsection (c)(2) for a period not to exceed 12 
        months.
    ``(e) A limited appointee who has been appointed from a career or 
career-conditional appointment outside the Senior Executive Service 
shall have reemployment rights in the agency from which appointed, or 
in another agency, under requirements and conditions established by the 
Office of Personnel Management. The Office shall have the authority to 
direct such placement in any agency.''.
    (c) Reassignment and Transfer.--Section 3395 of title 5, United 
States Code, is amended by striking subsections (b) and (c) and 
inserting the following:
    ``(b) Notwithstanding section 3394(b)--
            ``(1) a limited appointee serving under a term prescribed 
        under section 3394(c)(1) may be reassigned to another Senior 
        Executive Service position in the same agency, the duties of 
        which will expire at the end of a term of 4 years or less, 
        except that the appointee may not serve in 1 or more positions 
        in such agency under such appointment in excess of 4 years, 
        unless an extension has been approved by the Office; and
            ``(2) a limited appointee serving under a term prescribed 
        under section 3394(c)(2) may be reassigned to another 
        continuing Senior Executive Service position in the same 
        agency, except that the appointee may not serve in 1 or more 
        positions in such agency under such appointment in excess of 12 
        months, unless an extension has been approved by the Office.
    ``(c) A limited appointee may not serve more than 7 consecutive 
years under any combination of limited appointments.''.

SEC. 8. ANNUAL LEAVE ENHANCEMENTS.

    (a) In General.--Section 6303(a) of title 5, United States Code, is 
amended--
            (1) in paragraph (2), by striking ``and'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding after paragraph (3) the following:
            ``(4) one day for each full biweekly pay period for an 
        employee in a position paid under section 5376 or 5383, or for 
        an employee in an equivalent category for which the minimum 
        rate of basic pay is greater than the rate payable at GS-15, 
        step 10.''.
    (b) Regulations.--Not later than 120 days after the date of 
enactment of this Act, the Office of Personnel Management shall 
prescribe regulations to carry out the amendments made by this 
subsection.

SEC. 9. EFFECTIVE DATE.

    This Act shall take effect 90 days after the date of enactment of 
this Act.

Summary: Senior Executive Service Reform Act of 2003 - Establishes level II of the Executive Schedule as the maximum annual rate of pay, including comparability pay adjustments, for Senior Executive Service (SES) positions, including positions in the Federal Bureau of Investigation and the Drug Enforcement Administration. Requires establishment of a range of rates of basic pay for the SES, requiring each senior executive to be paid at one of such rates based on individual performance, contribution to the agency's performance, or both. Provides a minimum and maximum rates. Provides pay rate increases for administrative law judges, Contract Appeals Board members, and certain senior level positions by raising the Executive Schedule level on which their pay is based. Removes the authority for the appointment of limited emergency appointees. Sets duration limits for limited appointees, allowing the Office of Personnel Management to exceed such limits in rare circumstances. Outlines reemployment rights and reassignment and transfer authority for limited appointees. Provides one day of annual leave for each full biweekly pay period for positions classified above GS-15, senior executives, and any employee with a minimum rate of basic pay greater than the GS-15, step 10 rate.