114TH CONGRESS 

2D SESSION H. R. 4361 

AN ACT 

To amend section 3554 of title 44, United States Code, 

to provide for enhanced security of Federal information 

systems, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
2 

•HR 4361 EH

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

2 (a) SHORT TITLE.—This Act may be cited as the 

3 ‘‘Government Reform and Improvement Act of 2016’’. 

4 (b) TABLE OF CONTENTS.—The table of contents for 

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

TITLE I—FEDERAL INFORMATION SYSTEMS SAFEGUARDS 

Sec. 101. Agency discretion to secure information technology and information 

systems. 

TITLE II—ELIMINATING PORNOGRAPHY FROM AGENCIES 

Sec. 201. Prohibition on accessing pornographic web sites from federal computers. 

TITLE III—EXTENSION OF PROBATIONARY PERIOD FOR CAREER 

EMPLOYEES 

Sec. 301. Extension of probationary period for positions within the competitive 

service. 

Sec. 302. Appeals from adverse actions. 

TITLE IV—SENIOR EXECUTIVE SERVICE ACCOUNTABILITY 

Sec. 401. Biennial justification of Senior Executive Service positions. 

Sec. 402. Extension of probationary period for career appointees. 

Sec. 403. Modification of pay retention for career appointees removed for under 

performance. 

Sec. 404. Advanced establishment of performance requirements under Senior 

Executive Service performance appraisal systems. 

Sec. 405. Amendments with respect to adverse actions against career appointees. 

Sec. 406. Mandatory leave for career appointees subject to removal. 

Sec. 407. Expedited removal of career appointees for performance or misconduct. 

Sec. 408. Mandatory reassignment of career appointees. 

TITLE V—OPM REPORT ON OFFICIAL TIME 

Sec. 501. Reporting requirement. 

TITLE VI—MIDNIGHT RULE RELIEF 

Sec. 601. Moratorium on midnight rules. 

Sec. 602. Special rule on statutory, regulatory, and judicial deadlines. 

Sec. 603. Exception. 

Sec. 604. Judicial review. 

Sec. 605. Definitions. 
3 

•HR 4361 EH

TITLE VII—REQUIREMENT TO MAINTAIN RECORDS 

Sec. 701. Requirement to maintain records. 

1 TITLE I—FEDERAL INFORMA2 TION SYSTEMS SAFEGUARDS 

3 SEC. 101. AGENCY DISCRETION TO SECURE INFORMATION 

4 TECHNOLOGY AND INFORMATION SYSTEMS. 

5 (a) IN GENERAL.—In carrying out section 3554 of 

6 title 44, United States Code, any action taken by the head 

7 of an agency that is necessary to limit, restrict, or prohibit 

8 access to any website the head of the agency determines 

9 to present a current or future security weakness or risk 

10 to the information technology or information system under 

11 the control of the agency, and any impact or implementa12 tion of such action, shall not be subject to chapter 71 of 

13 title 5, United States Code. 

14 (b) INFORMATION SECURITY PROTOCOL.—An agency 

15 employee acting in the official capacity of the employee 

16 may not establish, operate, maintain, or otherwise permit 

17 the use of information technology that is not certified by 

18 the appropriate Federal entity responsible for information 

19 security (either the Director of the Office of Management 

20 and Budget, the head of the agency, the Secretary of 

21 Homeland Security, or the Chief Information Officer of 

22 the agency, as applicable) as in compliance with the estab23 lished information security policies, procedures, and pro24 grams. 
4 

•HR 4361 EH

1 (c) DEFINITIONS.—In this section— 

2 (1) the terms ‘‘agency’’ and ‘‘information sys3 tem’’ have the meanings given the terms in section 

4 3502 of title 44, United States Code; and 

5 (2) the term ‘‘information technology’’ has the 

6 meaning given the term in section 3552 of title 44, 

7 United States Code. 

8 TITLE II—ELIMINATING POR9 NOGRAPHY FROM AGENCIES 

10 SEC. 201. PROHIBITION ON ACCESSING PORNOGRAPHIC 

11 WEB SITES FROM FEDERAL COMPUTERS. 

12 (a) PROHIBITION.—Except as provided in subsection 

13 (b), not later than 90 days after the date of the enactment 

14 of this Act, the Director of the Office of Management and 

15 Budget shall issue guidelines that prohibit the access of 

16 a pornographic or other explicit web site from a Federal 

17 computer. 

18 (b) EXCEPTION.—The prohibition described in sub19 section (a) shall not apply to any Federal computer that 

20 is used for an investigative purpose that requires accessing 

21 a pornographic web site. 
5 

•HR 4361 EH

1 TITLE III—EXTENSION OF PRO2 BATIONARY PERIOD FOR CA3 REER EMPLOYEES 

4 SEC. 301. EXTENSION OF PROBATIONARY PERIOD FOR PO5 SITIONS WITHIN THE COMPETITIVE SERVICE. 

6 (a) IN GENERAL.—Section 3321 of title 5, United 

7 States Code, is amended— 

8 (1) in subsection (a), by striking ‘‘The Presi9 dent’’ and inserting ‘‘Subject to subsections (c) and 

10 (d), the President’’; 

11 (2) by redesignating subsection (c) as sub12 section (e); and 

13 (3) by inserting after subsection (b) the fol14 lowing: 

15 ‘‘(c)(1) Except as provided in paragraph (2), the 

16 length of a probationary period established under para17 graph (1) or (2) of subsection (a) shall be— 

18 ‘‘(A) with respect to any position that requires 

19 formal training, a period of 2 years beginning on the 

20 date that such formal training is completed; 

21 ‘‘(B) with respect to any position that requires 

22 a license, a period of 2 years beginning on the date 

23 that such license is granted; and 

24 ‘‘(C) with respect to any position not covered by 

25 subparagraph (A) or (B), not less than 2 years. 
6 

•HR 4361 EH

1 ‘‘(2) The length of a probationary period established 

2 under paragraph (1) or (2) of subsection (a) in the case 

3 of a preference eligible shall be not longer than— 

4 ‘‘(A) if the appointment (as referred to in sub5 section (a)(1)) or the initial appointment (as re6 ferred to in subsection (a)(2)) is to a position that 

7 exists on the effective date of this subsection, the 

8 length of the probationary period which applies to 

9 such position as of such effective date; or 

10 ‘‘(B) if the appointment (as referred to in sub11 section (a)(1)) or the initial appointment (as re12 ferred to in subsection (a)(2)) is to a position that 

13 does not exist on the effective date of this sub14 section, such length of time as the President may es15 tablish, consistent with the purposes of this subpara16 graph. 

17 ‘‘(3) In paragraph (1)— 

18 ‘‘(A) the term ‘formal training’ means, with re19 spect to any position, a training program required 

20 by law, rule, or regulation, or otherwise required by 

21 the employing agency, to be completed by the em22 ployee before the employee is able to successfully 

23 execute the duties of the applicable position; and 
7 

•HR 4361 EH

1 ‘‘(B) the term ‘license’ means a license, certifi2 cation, or other grant of permission to engage in a 

3 particular activity. 

4 ‘‘(d) The head of each agency shall, in the adminis5 tration of this section, take appropriate measures to en6 sure that— 

7 ‘‘(1) any announcement of a vacant position 

8 within such agency and any offer of appointment 

9 made to any individual with respect to any such po10 sition shall clearly state the terms and conditions of 

11 the probationary period applicable to such position; 

12 ‘‘(2) any individual who is required to complete 

13 a probationary period under this section shall receive 

14 timely notice of the performance and other require15 ments which must be met in order to successfully 

16 complete the probationary period; and 

17 ‘‘(3) upon successful completion of a proba18 tionary period under this section, certification to 

19 that effect shall be made, supported by a brief state20 ment of the basis for that certification, in such form 

21 and manner as the President may by regulation pre22 scribe.’’. 

23 (b) TECHNICAL AMENDMENT.—Section 3321(e) of 

24 title 5, United States Code (as so redesignated by sub-
8 

•HR 4361 EH

1 section (a)(2)) is amended by striking ‘‘Subsections (a) 

2 and (b)’’ and inserting ‘‘Subsections (a) through (d)’’. 

3 (c) EFFECTIVE DATE.—This section and the amend4 ments made by this section— 

5 (1) shall take effect 180 days after the date of 

6 enactment of this Act; and 

7 (2) shall apply in the case of any appointment 

8 (as referred to in section 3321(a)(1) of title 5, 

9 United States Code) and any initial appointment (as 

10 referred to in section 3321(a)(2) of such title) tak11 ing effect on or after the date on which this section 

12 takes effect. 

13 SEC. 302. APPEALS FROM ADVERSE ACTIONS. 

14 (a) SUBCHAPTER I OF CHAPTER 75 OF TITLE 5.— 

15 Section 7501(1) of title 5, United States Code, is amend16 ed— 

17 (1) by striking ‘‘1 year’’ the first place it ap18 pears and inserting ‘‘not less than 2 years’’; and 

19 (2) by striking ‘‘1 year’’ the second place it ap20 pears and inserting ‘‘2 years’’. 

21 (b) SUBCHAPTER II OF CHAPTER 75 OF TITLE 5.— 

22 Section 7511(a)(1) of title 5, United States Code, is 

23 amended— 
9 

•HR 4361 EH

1 (1) in subparagraph (A)(ii), by striking ‘‘1 

2 year’’ the first place it appears and inserting ‘‘not 

3 less than 2 years’’; and 

4 (2) in subparagraph (C)(ii), by striking ‘‘2 

5 years’’ the first place it appears and inserting ‘‘not 

6 less than 2 years’’. 

7 (c) EFFECTIVE DATE.—The amendments made by 

8 subsections (a) and (b)— 

9 (1) shall take effect 180 days after the date of 

10 enactment of this Act; and 

11 (2) shall apply in the case of any individual 

12 whose period of continuous service (as referred to in 

13 the provision of law amended by paragraph (1) or 

14 (2) of subsection (b), as the case may be) com15 mences on or after the date on which this section 

16 takes effect. 

17 TITLE IV—SENIOR EXECUTIVE 

18 SERVICE ACCOUNTABILITY 

19 SEC. 401. BIENNIAL JUSTIFICATION OF SENIOR EXECUTIVE 

20 SERVICE POSITIONS. 

21 Section 3133(a)(2) of title 5, United States Code, is 

22 amended by inserting after ‘‘positions’’ the following: ‘‘, 

23 with a justification for each position (by title and organi24 zational location) and the specific result expected from 
10 

•HR 4361 EH

1 each position, including the impact of such result on the 

2 agency mission,’’. 

3 SEC. 402. EXTENSION OF PROBATIONARY PERIOD FOR CA4 REER APPOINTEES. 

5 (a) IN GENERAL.—Section 3393(d) of title 5, United 

6 States Code, is amended by striking ‘‘1-year’’ and insert7 ing ‘‘2-year’’. 

8 (b) CONFORMING AMENDMENT.—Section 3592(a)(1) 

9 of such title is amended by striking ‘‘1-year’’ and inserting 

10 ‘‘2-year’’. 

11 SEC. 403. MODIFICATION OF PAY RETENTION FOR CAREER 

12 APPOINTEES REMOVED FOR UNDER PER13 FORMANCE. 

14 Section 3594(c)(1)(B) of title 5, United States Code, 

15 is amended to read as follows: 

16 ‘‘(B)(i) any career appointee placed under sub17 section (a) or (b)(2) of this section shall be entitled 

18 to receive basic pay at the highest of— 

19 ‘‘(I) the rate of basic pay in effect for the posi20 tion in which placed; 

21 ‘‘(II) the rate of basic pay in effect at the time 

22 of the placement for the position the career ap23 pointee held in the civil service immediately before 

24 being appointed to the Senior Executive Service; or 
11 

•HR 4361 EH

1 ‘‘(III) the rate of basic pay in effect for the ca2 reer appointee immediately before being placed 

3 under subsection (a) or (b) of this section; and 

4 ‘‘(ii) any career appointee placed under sub5 section (b)(1) of this section shall be entitled to re6 ceive basic pay at the rate of basic pay in effect for 

7 the position in which placed; and’’. 

8 SEC. 404. ADVANCED ESTABLISHMENT OF PERFORMANCE 

9 REQUIREMENTS UNDER SENIOR EXECUTIVE 

10 SERVICE PERFORMANCE APPRAISAL SYS11 TEMS. 

12 Section 4312(b)(1) of title 5, United States Code, is 

13 amended— 

14 (1) by striking ‘‘on or’’ and inserting ‘‘not later 

15 than 30 calendar days’’; and 

16 (2) by inserting ‘‘in writing’’ after ‘‘commu17 nicated’’. 

18 SEC. 405. AMENDMENTS WITH RESPECT TO ADVERSE AC19 TIONS AGAINST CAREER APPOINTEES. 

20 (a) SUSPENSION FOR 14 DAYS OR LESS FOR SENIOR

21 EXECUTIVE SERVICE EMPLOYEE.—Paragraph (1) of Sec22 tion 7501 of title 5, United States Code, is amended to 

23 read as follows: 

24 ‘‘(1) ‘employee’ means— 
12 

•HR 4361 EH

1 ‘‘(A) an individual in the competitive serv2 ice who is not serving a probationary period or 

3 trial period under an initial appointment or who 

4 has completed 1 year of current continuous em5 ployment in the same or similar positions under 

6 other than a temporary appointment limited to 

7 1 year or less; or 

8 ‘‘(B) a career appointee in the Senior Ex9 ecutive Service who— 

10 ‘‘(i) has completed the probationary 

11 period prescribed under section 3393(d); or 

12 ‘‘(ii) was covered by the provisions of 

13 subchapter II of this chapter immediately 

14 before appointment to the Senior Executive 

15 Service; and’’. 

16 (b) MODIFICATION OF CAUSE AND PROCEDURE FOR

17 SUSPENSION AND TERMINATION.— 

18 (1) IN GENERAL.—Section 7543 of title 5, 

19 United States Code, is amended— 

20 (A) in subsection (a), by striking ‘‘mis21 conduct,’’ and inserting ‘‘such cause as would 

22 promote the efficiency of the service, mis23 conduct,’’; and 

24 (B) in subsection (b)(1), by striking ‘‘30’’ 

25 and inserting ‘‘15’’. 
13 

•HR 4361 EH

1 (2) CONFORMING AMENDMENTS.—Subchapter 

2 V of chapter 35 of title 5, United States Code, is 

3 amended— 

4 (A) in section 3593— 

5 (i) in subsection (a)(2), by striking 

6 ‘‘misconduct,’’ and inserting ‘‘such cause 

7 as would promote the efficiency of the 

8 service, misconduct,’’; and 

9 (ii) in subsection (b), by striking 

10 ‘‘misconduct,’’ and inserting ‘‘such cause 

11 as would promote the efficiency of the 

12 service, misconduct,’’; and 

13 (B) in section 3594(a), by striking ‘‘mis14 conduct,’’ and inserting ‘‘such cause as would 

15 promote the efficiency of the service, mis16 conduct,’’. 

17 SEC. 406. MANDATORY LEAVE FOR CAREER APPOINTEES 

18 SUBJECT TO REMOVAL. 

19 (a) IN GENERAL.—Subchapter II of chapter 63 of 

20 title 5, United States Code, is amended by adding at the 

21 end the following: 

22 ‘‘§ 6330. Mandatory leave for Senior Executive Serv23 ice career appointees subject to removal 

24 ‘‘(a) In this section— 
14 

•HR 4361 EH

1 ‘‘(1) the term ‘employee’ means an employee 

2 (as that term is defined in section 7541(1)) who has 

3 received written notice of removal from the civil 

4 service under subchapter V of chapter 75; and 

5 ‘‘(2) the term ‘mandatory leave’ means, with re6 spect to an employee, an absence with pay but with7 out duty during which such employee— 

8 ‘‘(A) shall be charged accrued annual leave 

9 for the period of such absence; and 

10 ‘‘(B) may not accrue any annual leave 

11 under section 6303 for the period of such ab12 sence. 

13 ‘‘(b) Under regulations prescribed by the Office of 

14 Personnel Management, an agency may place an employee 

15 on mandatory leave for misconduct, neglect of duty, mal16 feasance, or such cause as would promote the efficiency 

17 of the service. 

18 ‘‘(c) If an agency determines that an employee should 

19 be placed on mandatory leave under subsection (b), such 

20 leave shall begin no earlier than the date on which the 

21 employee received written notice of a removal under sub22 chapter V of chapter 75. 

23 ‘‘(d) If a final order or decision is issued in favor 

24 of such employee with respect to removal under sub25 chapter V of chapter 75 by the agency, the Merit Systems 
15 

•HR 4361 EH

1 Protection Board, or the United States Court of Appeals 

2 for the Federal Circuit, any annual leave that is charged 

3 to an employee by operation of this section shall be re4 stored to the applicable leave account of such employee.’’. 

5 (b) CLERICAL AMENDMENT.—The table of sections 

6 of chapter 63 of title 5, United States Code, is amended 

7 by adding after the item relating to section 6328 the fol8 lowing new item: 

‘‘6330. Mandatory leave for Senior Executive Service career appointees subject 

to removal.’’. 

9 (c) REGULATIONS.—Not later than 6 months after 

10 the date of enactment of this Act, the Director of the Of11 fice of Personnel Management shall prescribe regulations 

12 with respect to the leave provided by the amendment in 

13 subsection (a). 

14 SEC. 407. EXPEDITED REMOVAL OF CAREER APPOINTEES 

15 FOR PERFORMANCE OR MISCONDUCT. 

16 (a) IN GENERAL.—Chapter 75 of title 5, United 

17 States Code, is amended by adding at the end the fol18 lowing: 

19 ‘‘SUBCHAPTER VI—SENIOR EXECUTIVE 

20 SERVICE: EXPEDITED REMOVAL 

21 ‘‘§ 7551. Definitions 

22 ‘‘In this subchapter— 

23 ‘‘(1) the term ‘employee’ has the meaning given 

24 such term in section 7541(1), but does not include 
16 

•HR 4361 EH

1 any career appointee in the Senior Executive Service 

2 within the Department of Veterans Affairs; and 

3 ‘‘(2) the term ‘misconduct’ includes neglect of 

4 duty, malfeasance, or failure to accept a directed re5 assignment or to accompany a position in a transfer 

6 of function. 

7 ‘‘§ 7552. Actions covered 

8 ‘‘This subchapter applies to a removal from the civil 

9 service or a transfer from the Senior Executive Service, 

10 but does not apply to an action initiated under section 

11 1215, to a removal under section 3592 or 3595, to a sus12 pension under section 7503, to a suspension or removal 

13 under section 7532, to a suspension or removal under sec14 tion 7542, or to a suspension or removal under section 

15 713 of title 38. 

16 ‘‘§ 7553. Cause and procedure 

17 ‘‘(a)(1) Under regulations prescribed by the Office of 

18 Personnel Management, the head of an agency may re19 move an employee of the agency from the Senior Executive 

20 Service if the head determines that the performance or 

21 misconduct of the individual warrants such removal. If the 

22 head so removes such an individual, the head may— 

23 ‘‘(A) remove the individual from the civil serv24 ice; or 
17 

•HR 4361 EH

1 ‘‘(B) in the case of an employee described in 

2 paragraph (2), transfer the employee from the Sen3 ior Executive Service to a General Schedule position 

4 at any grade of the General Schedule for which the 

5 employee is qualified and that the head determines 

6 is appropriate. 

7 ‘‘(2) An employee described in this paragraph is an 

8 individual who— 

9 ‘‘(A) previously occupied a permanent position 

10 within the competitive service; 

11 ‘‘(B) previously occupied a permanent position 

12 within the excepted service; or 

13 ‘‘(C) prior to employment as a career appointee 

14 at the agency, did not occupy any position within the 

15 Federal Government. 

16 ‘‘(3) An employee against whom an action is proposed 

17 under paragraph (1) is entitled to 5 days’ advance written 

18 notice. 

19 ‘‘(b)(1) Notwithstanding any other provision of law, 

20 including section 3594, any employee transferred to a 

21 General Schedule position under subsection (a)(1)(B) 

22 shall, beginning on the date of such transfer, receive the 

23 annual rate of pay applicable to such position. 

24 ‘‘(2) An employee so transferred may not be placed 

25 on administrative leave or any other category of paid leave 
18 

•HR 4361 EH

1 during the period during which an appeal (if any) under 

2 this section is ongoing, and may only receive pay if the 

3 individual reports for duty. If an employee so transferred 

4 does not report for duty, such employee shall not receive 

5 pay or other benefits pursuant to section 7554(e). 

6 ‘‘(c) Not later than 30 days after removing or trans7 ferring an employee under subsection (a), the applicable 

8 head of the agency shall submit to Congress notice in writ9 ing of such removal or transfer and the reason for such 

10 removal or transfer. 

11 ‘‘(d) Section 3592(b)(1) does not apply to an action 

12 to remove or transfer an employee under this section. 

13 ‘‘(e) Subject to the requirements of section 7554, an 

14 employee may appeal a removal or transfer under sub15 section (a) to the Merit Systems Protection Board under 

16 section 7701, but only if such appeal is made not later 

17 than seven days after the date of such removal or transfer. 

18 ‘‘§ 7554. Expedited review of appeal 

19 ‘‘(a) Upon receipt of an appeal under section 

20 7553(d), the Merit Systems Protection Board shall refer 

21 such appeal to an administrative judge pursuant to section 

22 7701(b)(1). The administrative judge shall— 

23 ‘‘(1) expedite any such appeal under such sec24 tion; and 
19 

•HR 4361 EH

1 ‘‘(2) in any such case, issue a decision not later 

2 than 21 days after the date of the appeal. 

3 ‘‘(b) Notwithstanding any other provision of law, in4 cluding section 7703, the decision of an administrative 

5 judge under subsection (a) shall be final and shall not be 

6 subject to any further appeal. 

7 ‘‘(c) In any case in which the administrative judge 

8 cannot issue a decision in accordance with the 21-day re9 quirement under subsection (a)(2), the removal or transfer 

10 is final. In such a case, the Merit Systems Protection 

11 Board shall, within 14 days after the date that such re12 moval or transfer is final, submit to Congress a report 

13 that explains the reasons why a decision was not issued 

14 in accordance with such requirement. 

15 ‘‘(d) The Merit Systems Protection Board or admin16 istrative judge may not stay any removal or transfer under 

17 this section. 

18 ‘‘(e) During the period beginning on the date on 

19 which an employee appeals a removal from the civil service 

20 under section 7553(d) and ending on the date that the 

21 administrative judge issues a final decision on such appeal, 

22 such employee may not receive any pay, awards, bonuses, 

23 incentives, allowances, differentials, student loan repay24 ments, special payments, or benefits.’’. 

25 (b) APPLICATION.— 
20 

•HR 4361 EH

1 (1) IN GENERAL.—Subchapter VI of chapter 75 

2 of title 5, United States Code, as added by sub3 section (a), shall not apply to any personnel action 

4 against a career appointee (as that term is defined 

5 in section 3132(a)(4) of title 5, United States Code) 

6 that was commenced before the date of enactment of 

7 this Act. 

8 (2) RELATION TO OTHER AUTHORITIES.—The 

9 authority provided by such subchapter is in addition 

10 to the authority provided under section 3592 or sub11 chapter V of chapter 75 of title 5, United States 

12 Code. 

13 (c) TECHNICAL AMENDMENTS.— 

14 (1) TITLE 5.—Title 5, United States Code, is 

15 amended— 

16 (A) in section 3592(b)(2)— 

17 (i) by striking ‘‘or’’ at the end of sub18 paragraph (A); 

19 (ii) by striking the period at the end 

20 of subparagraph (B) and inserting ‘‘; or’’; 

21 and 

22 (iii) by adding at the end the fol23 lowing: 

24 ‘‘(C) any removal under subchapter VI of this 

25 title or section 713 of title 38.’’; 
21 

•HR 4361 EH

1 (B) in section 3393(g), by striking ‘‘1215,, 

2 3592, 3595, 7532, or 7543 of this title’’ and in3 serting ‘‘1215, 3592, 3595, 7532, 7543, or 

4 7553 of this title or section 713 of title 38’’; 

5 and 

6 (C) in section 7542, by striking ‘‘or to a 

7 removal under section 3592 or 3595 of this 

8 title’’ and inserting ‘‘to a removal under section 

9 3592 or 3595 of this title, to a suspension 

10 under section 7503, to a removal or transfer 

11 under section 7553, or a removal or transfer 

12 under section 713 of title 38’’. 

13 (2) TITLE 38.—Section 713(f)(1) of title 38, 

14 United States Code, is amended by striking ‘‘or sub15 chapter V’’ and inserting ‘‘, chapter 43, or sub16 chapters V and VI’’. 

17 (d) CLERICAL AMENDMENT.—The table of sections 

18 at the beginning of chapter 75 of title 5, United States 

19 Code, is amended by adding after the item relating to sec20 tion 7543 the following: 

‘‘SUBCHAPTER VI—SENIOR EXECUTIVE SERVICE: EXPEDITED REMOVAL

‘‘7551. Definitions. 

‘‘7552. Actions covered. 

‘‘7553. Cause and procedure. 

‘‘7554. Expedited review of appeal.’’. 
22 

•HR 4361 EH

1 SEC. 408. MANDATORY REASSIGNMENT OF CAREER AP2 POINTEES. 

3 (a) IN GENERAL.—Section 3395(a) of title 5, United 

4 States Code, is amended by adding at the end the fol5 lowing: 

6 ‘‘(3)(A) Consistent with the requirements of para7 graphs (1) and (2), at least once every five years beginning 

8 on the date that a career appointee is initially appointed 

9 to the Senior Executive Service, each career appointee at 

10 an agency shall be reassigned to another Senior Executive 

11 Service position at the agency at a different geographic 

12 location that does not include the supervision of the same 

13 agency personnel or programs. 

14 ‘‘(B) The head of an agency may waive the require15 ment under subparagraph (A) for any career appointee if 

16 the head submits notice of the waiver and an explanation 

17 of the reasons for the waiver to the Committee on Over18 sight and Government Reform of the House of Represent19 atives and the Committee on Homeland Security and Gov20 ernmental Affairs of the Senate.’’. 

21 (b) CONFORMING AMENDMENT.—Section 

22 3395(a)(1)(A) of title 5, United States Code, is amended 

23 by striking ‘‘paragraph (2)’’ and inserting ‘‘paragraphs 

24 (2) and (3)’’. 
23 

•HR 4361 EH

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall take effect 90 days after the date of en3 actment of this Act. 

4 TITLE V—OPM REPORT ON 

5 OFFICIAL TIME 

6 SEC. 501. REPORTING REQUIREMENT. 

7 (a) IN GENERAL.—Section 7131 of title 5, United 

8 States Code, is amended by adding at the end the fol9 lowing: 

10 ‘‘(e)(1)(A) Not later than March 31 of each calendar 

11 year, the Office of Personnel Management, in consultation 

12 with the Office of Management and Budget, shall submit 

13 to each House of Congress a report on the operation of 

14 this section during the fiscal year last ending before the 

15 start of such calendar year. 

16 ‘‘(B) Not later than December 31 of each calendar 

17 year, each agency (as defined by section 7103(a)(3)) shall 

18 furnish to the Office of Personnel Management the infor19 mation which such Office requires, with respect to such 

20 agency, for purposes of the report which is next due under 

21 subparagraph (A). 

22 ‘‘(2) Each report by the Office of Personnel Manage23 ment under this subsection shall include, with respect to 

24 the fiscal year described in paragraph (1)(A), at least the 

25 following information: 
24 

•HR 4361 EH

1 ‘‘(A) The total amount of official time granted 

2 to employees. 

3 ‘‘(B) The average amount of official time ex4 pended per bargaining unit employee. 

5 ‘‘(C) The specific types of activities or purposes 

6 for which official time was granted, and the impact 

7 which the granting of such official time for such ac8 tivities or purposes had on agency operations. 

9 ‘‘(D) The total number of employees to whom 

10 official time was granted, and, of that total, the 

11 number who were not engaged in any activities or 

12 purposes except activities or purposes involving the 

13 use of official time. 

14 ‘‘(E) The total amount of compensation (includ15 ing fringe benefits) afforded to employees in connec16 tion with activities or purposes for which they were 

17 granted official time. 

18 ‘‘(F) A description of any room or space des19 ignated at the agency (or its subcomponent) where 

20 official time activities will be conducted, including 

21 the square footage of any such room or space. 

22 ‘‘(3) All information included in a report by the Of23 fice of Personnel Management under this subsection with 

24 respect to a fiscal year— 
25 

•HR 4361 EH

1 ‘‘(A) shall be shown both agency-by-agency and 

2 for all agencies; and 

3 ‘‘(B) shall be accompanied by the corresponding 

4 information (submitted by the Office in its report 

5 under this subsection) for the fiscal year before the 

6 fiscal year to which such report pertains, together 

7 with appropriate comparisons and analyses. 

8 ‘‘(4) For purposes of this subsection, the term ‘offi9 cial time’ means any period of time, regardless of agency 

10 nomenclature— 

11 ‘‘(A) which may be granted to an employee 

12 under this chapter (including a collective bargaining 

13 agreement entered into under this chapter) to per14 form representational or consultative functions; and 

15 ‘‘(B) during which the employee would other16 wise be in a duty status.’’. 

17 (b) APPLICABILITY.—The amendment made by sub18 section (a) shall be effective beginning with the report 

19 which, under the provisions of such amendment, is first 

20 required to be submitted by the Office of Personnel Man21 agement to each House of Congress by a date which oc22 curs at least 6 months after the date of the enactment 

23 of this Act. 
26 

•HR 4361 EH

1 TITLE VI—MIDNIGHT RULE 

2 RELIEF 

3 SEC. 601. MORATORIUM ON MIDNIGHT RULES. 

4 Except as provided under sections 602 and 603, dur5 ing the moratorium period, an agency may not propose 

6 or adopt any midnight rule unless the Administrator finds 

7 the midnight rule will not result in any of the following: 

8 (1) An annual effect on the economy of 

9 $100,000,000 or more. 

10 (2) A major increase in costs or prices for con11 sumers, individual industries, Federal, State, or local 

12 government agencies, or geographic regions. 

13 (3) Significant adverse effects on competition, 

14 employment, wages, investment, productivity, inno15 vation, or on the ability of United States-based en16 terprises to compete with foreign-based enterprises 

17 in domestic and export markets. 

18 (4) A significant economic impact on a substan19 tial number of small entities. 

20 SEC. 602. SPECIAL RULE ON STATUTORY, REGULATORY, 

21 AND JUDICIAL DEADLINES. 

22 (a) IN GENERAL.—Section 601 shall not apply with 

23 respect to any midnight rule required by statute, other 

24 regulation, or judicial order to be proposed or adopted by 

25 a deadline that— 
27 

•HR 4361 EH

1 (1) was established before the beginning of the 

2 moratorium period; and 

3 (2) occurs during the moratorium period. 

4 (b) PUBLICATION OF DEADLINES.—Not later than 

5 30 days after the beginning of a moratorium period, the 

6 Administrator shall identify and publish in the Federal 

7 Register a list of midnight rules covered by subsection (a). 

8 SEC. 603. EXCEPTION. 

9 (a) EMERGENCY EXCEPTION.—Section 601 shall not 

10 apply to a midnight rule if the President determines by 

11 Executive order that the midnight rule is— 

12 (1) necessary because of an emergency; 

13 (2) necessary for the enforcement of criminal 

14 laws; 

15 (3) necessary for the national security of the 

16 United States; or 

17 (4) issued pursuant to any statute imple18 menting an international trade agreement. 

19 (b) DEREGULATORY EXCEPTION.—Section 601 shall 

20 not apply to a midnight rule that the Administrator finds 

21 is limited to repealing an existing rule and certifies such 

22 finding in writing. The certification shall be published in 

23 the Federal Register. 
28 

•HR 4361 EH

1 SEC. 604. JUDICIAL REVIEW. 

2 Any person or entity subject to the any midnight rule 

3 promulgated in violation of this title is entitled to judicial 

4 review. 

5 SEC. 605. DEFINITIONS. 

6 In this title: 

7 (1) ADMINISTRATOR.—The term ‘‘Adminis8 trator’’ means the Administrator of the Office of In9 formation and Regulatory Affairs within the Office 

10 of Management and Budget. 

11 (2) AGENCY.—The term ‘‘agency’’ has the 

12 meaning given that term under section 551 of title 

13 5, United States Code, except such term does not in14 clude— 

15 (A) the Federal Election Commission; 

16 (B) the Board of Governors of the Federal 

17 Reserve System; 

18 (C) the Federal Deposit Insurance Cor19 poration; or 

20 (D) the United States Postal Service. 

21 (3) DEADLINE.—The term ‘‘deadline’’ means 

22 any date certain for fulfilling any obligation or exer23 cising any authority established by or under any 

24 Federal statute or rule, or by or under any court 

25 order implementing any Federal statute, regulation, 

26 or rule. 
29 

•HR 4361 EH

1 (4) EMERGENCY.—The term ‘‘emergency’’ 

2 means a declaration by the President of a state of 

3 emergency. 

4 (5) MIDNIGHT RULE.—The term ‘‘midnight 

5 rule’’ means a rule proposed or adopted during the 

6 moratorium period. 

7 (6) MORATORIUM PERIOD.—The term ‘‘morato8 rium period’’ means the day after the day referred 

9 to in section 1 of title 3, United States Code, 

10 through January 20 of the following year, in which 

11 a President is not serving a consecutive term. 

12 (7) RULE.—The term ‘‘rule’’ has the meaning 

13 given that term under section 551 of title 5, United 

14 States Code. 

15 (8) SMALL ENTITY.—The term ‘‘small entity’’ 

16 has the meaning given the term ‘‘small business’’ 

17 under section 601 of title 5, United States Code. 

18 TITLE VII—REQUIREMENT TO 

19 MAINTAIN RECORDS 

20 SEC. 701. REQUIREMENT TO MAINTAIN RECORDS. 

21 (a) AMENDMENT.—Chapter 31 of title 44, United 

22 States Code, is amended by adding at the end the fol23 lowing new section: 
30 

•HR 4361 EH

1 ‘‘§ 3108. Requirement to maintain records 

2 ‘‘(a) IN GENERAL.—If the Internal Revenue Service 

3 obtains a preserved record, the Internal Revenue Service 

4 shall preserve for not less than 3 years from the date on 

5 which the record was obtained— 

6 ‘‘(1) the preserved record or a copy of the pre7 served record; and 

8 ‘‘(2) all records related to the preserved record. 

9 ‘‘(b) PRESERVED RECORD DEFINED.—In this sec10 tion, the term ‘preserved record’ means any record that 

11 is maintained by a person other than the Federal Govern12 ment pursuant to a rule, guidance, or other directive from 

13 the Internal Revenue Service that requires or recommends 

14 the person maintain records for a particular period of time 

15 on a particular matter. 

16 ‘‘(c) RULE OF CONSTRUCTION.—Nothing in this sec17 tion shall be construed as— 

18 ‘‘(1) limiting the preservation of a preserved 

19 record for a longer period of time than is required 

20 by this section; or 

21 ‘‘(2) shortening the period of time a preserved 

22 record is otherwise required to be maintained.’’. 

23 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

24 The table of sections for chapter 31 of title 44, United 
31 

•HR 4361 EH

1 States Code, is amended by adding at the end the fol2 lowing new item: 

‘‘3108. Requirement to maintain records.’’. 

3 (c) EFFECTIVE DATE; APPLICABILITY.—The amend4 ments made by this section shall take effect as of the date 

5 of the enactment of this Act and shall apply with respect 

6 to any preserved record (as such term is defined in section 

7 3108(b) of title 44, United States Code, as added by sub8 section (a)) obtained on or after the effective date. 

Passed the House of Representatives July 7 (legislative day July 6), 2016. 

Attest: 

Clerk. 
114TH CONGRESS 

2D SESSION H. R. 4361 

AN ACT 

To amend section 3554 of title 44, United States 

information systems, and for other purposes. Code, to provide for enhanced security of Federal