IB 

Union Calendar No. 131

108TH CONGRESS 

1ST SESSION H. R. 1836

[Report No. 108–116, Part I] 

To make changes to certain areas of the Federal civil service in order 

to improve the flexibility and competitiveness of Federal human resources 

management. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 29, 2003

Mr. TOM DAVIS of Virginia (for himself and Mr. HUNTER) introduced the following bill; which was referred to the Committee on Government Reform, 

and in addition to the Committees on Armed Services and Science, for 

a period to be subsequently determined by the Speaker, in each case for 

consideration of such provisions as fall within the jurisdiction of the committee concerned 

MAY 19, 2003

Reported from the Committee on Government Reform with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

MAY 19, 2003

Referral to the Committee on Armed Services extended for a period ending 

not later than May 20, 2003

MAY 19, 2003

Referral to the Committee on Science extended for a period ending not later 

than July 25, 2003

MAY 20, 2003

Referral to the Committee on Armed Services extended for a period ending 

not later than July 25, 2003

JUNE 3, 2003

Referred to the Committee on Ways and Means for a period ending not later 

than July 25, 2003 for consideration of such provisions of the bill and 
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amendment as fall within the jurisdiction of that committee pursuant to 

clause 1(s), rule X 

JULY 25, 2003

Committees on Armed Services, Science, Ways and Means discharged; committed to the Committee of the Whole House on the State of the Union, 

and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on April 29, 2003] 

A BILL

To make changes to certain areas of the Federal civil service 

in order to improve the flexibility and competitiveness 

of Federal human resources management.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Civil Service and National Security Personnel Improve6 ment Act’’. 

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

8 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—DEPARTMENT OF DEFENSE NATIONAL SECURITY 

PERSONNEL SYSTEM 

Sec. 101. Short title. 

Sec. 102. Department of Defense national security personnel system. 

TITLE II—DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL 

Sec. 201. Modification of the overtime pay cap. 

Sec. 202. Civil Service Retirement System computation for part-time service. 

Sec. 203. Military leave for mobilized Federal civilian employees. 

Sec. 204. Common occupational and health standards for differential payments 

as a consequence of exposure to asbestos. 

Sec. 205. Increase in annual student loan repayment authority. 
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Sec. 206. Authorization for cabinet secretaries, secretaries of military departments, and heads of executive agencies to be paid on a biweekly 

basis. 

Sec. 207. Additional classes of individuals eligible to participate in the Federal 

long-term care insurance program. 

Sec. 208. Clarification to Hatch Act; limitation on disclosure of certain records. 

Sec. 209. Senior Executive Service and performance. 

Sec. 210. Design elements of pay-for-performance systems in demonstration 

projects. 

Sec. 211. Federal flexible benefits plan administrative costs. 

Sec. 212. Nonreduction in pay while Federal employee is serving on active duty 

in a reserve component of the uniformed services. 

Sec. 213. Employee surveys. 

TITLE III—PROVISIONS RELATING TO THE SECURITIES AND EXCHANGE COMMISSION AND THE NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

Subtitle A—Securities and Exchange Commission 

Sec. 301. Securities and Exchange Commission. 

Subtitle B—National Aeronautics and Space Administration 

Sec. 311. Workforce authorities and personnel provisions. 

TITLE IV—HUMAN CAPITAL PERFORMANCE FUND 

Sec. 401. Human Capital Performance Fund. 

TITLE V—MISCELLANEOUS 

Sec. 501. Prohibition on use of quotas.

1 TITLE I—DEPARTMENT OF DE2 FENSE NATIONAL SECURITY 

3 PERSONNEL SYSTEM 

4 SEC. 101. SHORT TITLE. 

5 This title may be cited as the ‘‘National Security Per6 sonnel System Act’’. 

7 SEC. 102. DEPARTMENT OF DEFENSE NATIONAL SECURITY 

8 PERSONNEL SYSTEM. 

9 (a) IN GENERAL.—(1) Subpart I of part III of title 

10 5, United States Code, is amended by adding at the end 

11 the following new chapter: 
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1 ‘‘CHAPTER 99—DEPARTMENT OF DEFENSE 

2 NATIONAL SECURITY PERSONNEL SYSTEM

‘‘Sec. 

‘‘9901. Definitions. 

‘‘9902. Establishment of human resources management system. 

‘‘9903. Attracting highly qualified experts. 

‘‘9904. Employment of older Americans. 

‘‘9905. Special pay and benefits for certain employees outside the United States.

3 ‘‘§ 9901. Definitions 

4 ‘‘For purposes of this chapter—

5 ‘‘(1) the term ‘Director’ means the Director of the 

6 Office of Personnel Management; and 

7 ‘‘(2) the term ‘Secretary’ means the Secretary of 

8 Defense. 

9 ‘‘§ 9902. Establishment of human resources manage10 ment system 

11 ‘‘(a) IN GENERAL.—Notwithstanding any other provi12 sion of this part, the Secretary may, in regulations pre13 scribed jointly with the Director, establish, and from time 

14 to time adjust, a human resources management system for 

15 some or all of the organizational or functional units of the 

16 Department of Defense. If the Secretary certifies that 

17 issuance or adjustment of a regulation, or the inclusion, ex18 clusion, or modification of a particular provision therein, 

19 is essential to the national security, the Secretary may, sub20 ject to the decision of the President, waive the requirement 

21 in the preceding sentence that the regulation or adjustment 

22 be issued jointly with the Director. 
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1 ‘‘(b) SYSTEM REQUIREMENTS.—Any system estab2 lished under subsection (a) shall—

3 ‘‘(1) be flexible; 

4 ‘‘(2) be contemporary; 

5 ‘‘(3) not waive, modify, or otherwise affect—

6 ‘‘(A) the public employment principles of 

7 merit and fitness set forth in section 2301, in8 cluding the principles of hiring based on merit, 

9 fair treatment without regard to political affili10 ation or other nonmerit considerations, equal 

11 pay for equal work, and protection of employees 

12 against reprisal for whistleblowing;

13 ‘‘(B) any provision of section 2302, relating 

14 to prohibited personnel practices; 

15 ‘‘(C)(i) any provision of law referred to in 

16 section 2302(b)(1), (8), and (9); or 

17 ‘‘(ii) any provision of law implementing 

18 any provision of law referred to in section 

19 2302(b)(1), (8), and (9) by—

20 ‘‘(I) providing for equal employment 

21 opportunity through affirmative action; or 

22 ‘‘(II) providing any right or remedy 

23 available to any employee or applicant for 

24 employment in the public service; 
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1 ‘‘(D) any other provision of this part (as 

2 described in subsection (c)); or 

3 ‘‘(E) any rule or regulation prescribed 

4 under any provision of law referred to in this 

5 paragraph; 

6 ‘‘(4) ensure that employees may organize, bar7 gain collectively as provided for in this chapter, and 

8 participate through labor organizations of their own 

9 choosing in decisions which affect them, subject to the 

10 provisions of this chapter and any exclusion from cov11 erage or limitation on negotiability established pursu12 ant to law; 

13 ‘‘(5) not be limited by any specific law or au14 thority under this title that is waivable under this 

15 chapter or by any provision of this chapter or any 

16 rule or regulation prescribed under this title that is 

17 waivable under this chapter, except as specifically 

18 provided for in this section; and 

19 ‘‘(6) include a performance management system 

20 that incorporates the following elements: 

21 ‘‘(A) Adherence to merit principles set forth 

22 in section 2301. 

23 ‘‘(B) A fair, credible, and transparent em24 ployee performance appraisal system. 
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1 ‘‘(C) A link between the performance man2 agement system and the agency’s strategic plan. 

3 ‘‘(D) A means for ensuring employee in4 volvement in the design and implementation of 

5 the system. 

6 ‘‘(E) Adequate training and retraining for 

7 supervisors, managers, and employees in the im8 plementation and operation of the performance 

9 management system. 

10 ‘‘(F) A process for ensuring ongoing per11 formance feedback and dialogue between super12 visors, managers, and employees throughout the 

13 appraisal period, and setting timetables for re14 view; 

15 ‘‘(G) Effective safeguards to ensure that the 

16 management of the system is fair and equitable 

17 and based on employee performance. 

18 ‘‘(H) A means for ensuring that adequate 

19 agency resources are allocated for the design, im20 plementation, and administration of the per21 formance management system. 

22 ‘‘(c) OTHER NONWAIVABLE PROVISIONS.—The other 

23 provisions of this part referred to in subsection (b)(3)(D) 

24 are (to the extent not otherwise specified in this title)—
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1 ‘‘(1) subparts A, B, E, G, and H of this part; 

2 and 

3 ‘‘(2) chapters 41, 45, 47, 55 (except subchapter 

4 V thereof), 57, 59, 72, 73, and 79, and this chapter. 

5 ‘‘(d) LIMITATIONS RELATING TO PAY.—(1) Nothing in 

6 this section shall constitute authority to modify the pay of 

7 any employee who serves in an Executive Schedule position 

8 under subchapter II of chapter 53 of this title. 

9 ‘‘(2) Except as provided for in paragraph (1), the total 

10 amount in a calendar year of allowances, differentials, bo11 nuses, awards, or other similar cash payments paid under 

12 this title to any employee who is paid under section 5376 

13 or 5383 of this title or under title 10 or under other com14 parable pay authority established for payment of Depart15 ment of Defense senior executive or equivalent employees 

16 may not exceed the total annual compensation payable to 

17 the Vice President under section 104 of title 3. 

18 ‘‘(3) To the maximum extent practicable, the rates of 

19 compensation for civilian employees at the Department of 

20 Defense shall be adjusted at the same rate, and in the same 

21 proportion, as are rates of compensation for members of the 

22 uniformed services. 

23 ‘‘(e) PROVISIONS TO ENSURE COLLABORATION WITH

24 EMPLOYEE REPRESENTATIVES.—(1) In order to ensure 

25 that the authority of this section is exercised in collabora-
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1 tion with, and in a manner that ensures the participation 

2 of, employee representatives in the planning, development, 

3 and implementation of any human resources management 

4 system or adjustments to such system under this section, 

5 the Secretary and the Director shall provide for the fol6 lowing: 

7 ‘‘(A) The Secretary and the Director shall, with 

8 respect to any proposed system or adjustment—

9 ‘‘(i) provide to the employee representatives 

10 representing any employees who might be af11 fected a written description of the proposed sys12 tem or adjustment (including the reasons why it 

13 is considered necessary); 

14 ‘‘(ii) give such representatives at least 30 

15 calendar days (unless extraordinary cir16 cumstances require earlier action) to review and 

17 make recommendations with respect to the pro18 posal; and 

19 ‘‘(iii) give any recommendations received 

20 from such representatives under clause (ii) full 

21 and fair consideration in deciding whether or 

22 how to proceed with the proposal. 

23 ‘‘(B) Following receipt of recommendations, if 

24 any, from such employee representatives with respect 

25 to a proposal described in subparagraph (A), the Sec-
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1 retary and the Director shall accept such modifica2 tions to the proposal in response to the recommenda3 tions as they determine advisable and shall, with re4 spect to any parts of the proposal as to which they 

5 have not accepted the recommendations—

6 ‘‘(i) notify Congress of those parts of the 

7 proposal, together with the recommendations of 

8 the employee representatives; 

9 ‘‘(ii) meet and confer for not less than 30 

10 calendar days with the employee representatives, 

11 in order to attempt to reach agreement on wheth12 er or how to proceed with those parts of the pro13 posal; and

14 ‘‘(iii) at the Secretary’s option, or if re15 quested by a majority of the employee represent16 atives participating, use the services of the Fed17 eral Mediation and Conciliation Service during 

18 such meet and confer period to facilitate the 

19 process of attempting to reach agreement. 

20 ‘‘(C)(i) Any part of the proposal as to which the 

21 representatives do not make a recommendation, or as 

22 to which the recommendations are accepted by the 

23 Secretary and the Director, may be implemented im24 mediately. 
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1 ‘‘(ii) With respect to any parts of the proposal 

2 as to which recommendations have been made but not 

3 accepted by the Secretary and the Director, at any 

4 time after 30 calendar days have elapsed since the 

5 initiation of the congressional notification, consulta6 tion, and mediation procedures set forth in subpara7 graph (B), if the Secretary, in his discretion, deter8 mines that further consultation and mediation is un9 likely to produce agreement, the Secretary may imple10 ment any or all of such parts (including any modi11 fications made in response to the recommendations as 

12 the Secretary determines advisable), but only after 30 

13 days have elapsed after notifying Congress of the deci14 sion to implement the part or parts involved (as so 

15 modified, if applicable). 

16 ‘‘(iii) The Secretary shall notify Congress 

17 promptly of the implementation of any part of the 

18 proposal and shall furnish with such notice an expla19 nation of the proposal, any changes made to the pro20 posal as a result of recommendations from the em21 ployee representatives, and of the reasons why imple22 mentation is appropriate under this subparagraph. 

23 ‘‘(D) If a proposal described in subparagraph 

24 (A) is implemented, the Secretary and the Director 

25 shall—
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1 ‘‘(i) develop a method for the employee rep2 resentatives to participate in any further plan3 ning or development which might become nec4 essary; and 

5 ‘‘(ii) give the employee representatives ade6 quate access to information to make that partici7 pation productive. 

8 ‘‘(2) The Secretary may, at the Secretary’s discretion, 

9 engage in any and all collaboration activities described in 

10 this subsection at an organizational level above the level of 

11 exclusive recognition. 

12 ‘‘(3) In the case of any employees who are not within 

13 a unit with respect to which a labor organization is ac14 corded exclusive recognition, the Secretary and the Director 

15 may develop procedures for representation by any appro16 priate organization which represents a substantial percent17 age of those employees or, if none, in such other manner 

18 as may be appropriate, consistent with the purposes of this 

19 subsection. 

20 ‘‘(f) PROVISIONS REGARDING NATIONAL LEVEL BAR21 GAINING.—(1) Any human resources management system 

22 implemented or modified under this chapter may include 

23 employees of the Department of Defense from any bar24 gaining unit with respect to which a labor organization has 
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1 been accorded exclusive recognition under chapter 71 of this 

2 title. 

3 ‘‘(2) For any bargaining unit so included under para4 graph (1), the Secretary may bargain at an organizational 

5 level above the level of exclusive recognition. Any such bar6 gaining shall—

7 ‘‘(A) be binding on all subordinate bargaining 

8 units at the level of recognition and their exclusive 

9 representatives, and the Department of Defense and 

10 its subcomponents, without regard to levels of recogni11 tion; 

12 ‘‘(B) supersede all other collective bargaining 

13 agreements, including collective bargaining agree14 ments negotiated with an exclusive representative at 

15 the level of recognition, except as otherwise deter16 mined by the Secretary; 

17 ‘‘(C) not be subject to further negotiations for 

18 any purpose, including bargaining at the level of rec19 ognition, except as provided for by the Secretary; and 

20 ‘‘(D) except as otherwise specified in this chap21 ter, not be subject to review or to statutory third22 party dispute resolution procedures outside the De23 partment of Defense. 
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1 ‘‘(3) The National Guard Bureau and the Army and 

2 Air Force National Guard are excluded from coverage under 

3 this subsection. 

4 ‘‘(4) Any bargaining completed pursuant to this sub5 section with a labor organization not otherwise having na6 tional consultation rights with the Department of Defense 

7 or its subcomponents shall not create any obligation on the 

8 Department of Defense or its subcomponents to confer na9 tional consultation rights on such a labor organization. 

10 ‘‘(g) PROVISIONS RELATING TO APPELLATE PROCE11 DURES.—(1) The Secretary shall—

12 ‘‘(A) establish an appeals process that provides 

13 that employees of the Department of Defense are enti14 tled to fair treatment in any appeals that they bring 

15 in decisions relating to their employment; and 

16 ‘‘(B) in prescribing regulations for any such ap17 peals process—

18 ‘‘(i) ensure that employees of the Depart19 ment of Defense are afforded the protections of 

20 due process; and 

21 ‘‘(ii) toward that end, be required to consult 

22 with the Merit Systems Protection Board before 

23 issuing any such regulations. 
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1 ‘‘(2) Any regulations establishing the appeals process 

2 required by paragraph (1) that relate to any matters within 

3 the purview of chapter 77 shall—

4 ‘‘(A) provide for an independent review panel, 

5 appointed by the President, which shall not include 

6 the Secretary or the Deputy Secretary of Defense or 

7 any of their subordinates; 

8 ‘‘(B) be issued only after—

9 ‘‘(i) notification to the appropriate commit10 tees of Congress; and 

11 ‘‘(ii) consultation with the Merit Systems 

12 Protection Board and the Equal Employment 

13 Opportunity Commission; 

14 ‘‘(C) ensure the availability of procedures that—

15 ‘‘(i) are consistent with requirements of due 

16 process; and

17 ‘‘(ii) provide, to the maximum extent prac18 ticable, for the expeditious handling of any mat19 ters involving the Department of Defense; and 

20 ‘‘(D) modify procedures under chapter 77 only 

21 insofar as such modifications are designed to further 

22 the fair, efficient, and expeditious resolution of mat23 ters involving the employees of the Department of De24 fense. 
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1 ‘‘(h) PROVISIONS RELATED TO SEPARATION AND RE2 TIREMENT INCENTIVES.—(1) The Secretary may establish 

3 a program within the Department of Defense under which 

4 employees may be eligible for early retirement, offered sepa5 ration incentive pay to separate from service voluntarily, 

6 or both. This authority may be used to reduce the number 

7 of personnel employed by the Department of Defense or to 

8 restructure the workforce to meet mission objectives without 

9 reducing the overall number of personnel. This authority 

10 is in addition to, and notwithstanding, any other authori11 ties established by law or regulation for such programs. 

12 ‘‘(2) For purposes of this section, the term ‘employee’ 

13 means an employee of the Department of Defense, serving 

14 under an appointment without time limitation, except that 

15 such term does not include—

16 ‘‘(A) a reemployed annuitant under subchapter 

17 III of chapter 83 or chapter 84 of this title, or an18 other retirement system for employees of the Federal 

19 Government; 

20 ‘‘(B) an employee having a disability on the 

21 basis of which such employee is or would be eligible 

22 for disability retirement under any of the retirement 

23 systems referred to in paragraph (1); or 

24 ‘‘(C) for purposes of eligibility for separation in25 centives under this section, an employee who is in re-
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1 ceipt of a decision notice of involuntary separation 

2 for misconduct or unacceptable performance. 

3 ‘‘(3) An employee who is at least 50 years of age and 

4 has completed 20 years of service, or has at least 25 years 

5 of service, may, pursuant to regulations promulgated under 

6 this section, apply and be retired from the Department of 

7 Defense and receive benefits in accordance with chapter 83 

8 or 84 if the employee has been employed continuously with9 in the Department of Defense for more than 30 days before 

10 the date on which the determination to conduct a reduction 

11 or restructuring within 1 or more Department of Defense 

12 components is approved pursuant to the program estab13 lished under subsection (a). 

14 ‘‘(4)(A) Separation pay shall be paid in a lump sum 

15 or in installments and shall be equal to the lesser of—

16 ‘‘(i) an amount equal to the amount the em17 ployee would be entitled to receive under section 

18 5595(c) of this title, if the employee were entitled to 

19 payment under such section; or 

20 ‘‘(ii) $25,000. 

21 ‘‘(B) Separation pay shall not be a basis for payment, 

22 and shall not be included in the computation, of any other 

23 type of Government benefit. Separation pay shall not be 

24 taken into account for the purpose of determining the 

25 amount of any severance pay to which an individual may 
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1 be entitled under section 5595 of this title, based on any 

2 other separation. 

3 ‘‘(C) Separation pay, if paid in installments, shall 

4 cease to be paid upon the recipient’s acceptance of employ5 ment by the Federal Government, or commencement of work 

6 under a personal services contract as described in para7 graph (5). 

8 ‘‘(5)(A) An employee who receives separation pay 

9 under such program may not be reemployed by the Depart10 ment of Defense for a 12-month period beginning on the 

11 effective date of the employee’s separation, unless this prohi12 bition is waived by the Secretary on a case-by-case basis. 

13 ‘‘(B) An employee who receives separation pay under 

14 this section on the basis of a separation occurring on or 

15 after the date of the enactment of the Federal Workforce Re16 structuring Act of 1994 (Public Law 103–236; 108 Stat. 

17 111) and accepts employment with the Government of the 

18 United States, or who commences work through a personal 

19 services contract with the United States within 5 years after 

20 the date of the separation on which payment of the separa21 tion pay is based, shall be required to repay the entire 

22 amount of the separation pay to the Department of Defense. 

23 If the employment is with an Executive agency (as defined 

24 by section 105 of this title) other than the Department of 

25 Defense, the Director may, at the request of the head of that 
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1 agency, waive the repayment if the individual involved pos2 sesses unique abilities and is the only qualified applicant 

3 available for the position. If the employment is within the 

4 Department of Defense, the Secretary may waive the repay5 ment if the individual involved is the only qualified appli6 cant available for the position. If the employment is with 

7 an entity in the legislative branch, the head of the entity 

8 or the appointing official may waive the repayment if the 

9 individual involved possesses unique abilities and is the 

10 only qualified applicant available for the position. If the 

11 employment is with the judicial branch, the Director of the 

12 Administrative Office of the United States Courts may 

13 waive the repayment if the individual involved possesses 

14 unique abilities and is the only qualified applicant avail15 able for the position. 

16 ‘‘(6) Under this program, early retirement and separa17 tion pay may be offered only pursuant to regulations estab18 lished by the Secretary, subject to such limitations or condi19 tions as the Secretary may require. 

20 ‘‘(i) PROVISIONS RELATING TO REEMPLOYMENT.—If 

21 annuitant receiving an annuity from the Civil Service Re22 tirement and Disability Fund becomes employed in a posi23 tion within the Department of Defense, his annuity shall 

24 continue. An annuitant so reemployed shall not be consid25 ered an employee for purposes of chapter 83 or 84. 
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1 ‘‘(j) PROVISIONS RELATING TO HIRING.—Notwith2 standing subsection (c), the Secretary may exercise any hir3 ing flexibilities that would otherwise be available to the Sec4 retary under section 4703. 

5 ‘‘§ 9903. Attracting highly qualified experts 

6 ‘‘(a) IN GENERAL.—The Secretary may carry out a 

7 program using the authority provided in subsection (b) in 

8 order to attract highly qualified experts in needed occupa9 tions, as determined by the Secretary. 

10 ‘‘(b) AUTHORITY.—Under the program, the Secretary 

11 may—

12 ‘‘(1) appoint personnel from outside the civil 

13 service and uniformed services (as such terms are de14 fined in section 2101 of this title) to positions in the 

15 Department of Defense without regard to any provi16 sion of this title governing the appointment of em17 ployees to positions in the Department of Defense;

18 ‘‘(2) prescribe the rates of basic pay for positions 

19 to which employees are appointed under paragraph 

20 (1) at rates not in excess of the maximum rate of 

21 basic pay authorized for senior-level positions under 

22 section 5376 of this title, as increased by locality23 based comparability payments under section 5304 of 

24 this title, notwithstanding any provision of this title 
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1 governing the rates of pay or classification of employ2 ees in the executive branch; and 

3 ‘‘(3) pay any employee appointed under para4 graph (1) payments in addition to basic pay within 

5 the limits applicable to the employee under subsection 

6 (d). 

7 ‘‘(c) LIMITATION ON TERM OF APPOINTMENT.—(1) Ex8 cept as provided in paragraph (2), the service of an em9 ployee under an appointment made pursuant to this section 

10 may not exceed 5 years. 

11 ‘‘(2) The Secretary may, in the case of a particular 

12 employee, extend the period to which service is limited 

13 under paragraph (1) by up to 1 additional year if the Sec14 retary determines that such action is necessary to promote 

15 the Department of Defense’s national security missions. 

16 ‘‘(d) LIMITATIONS ON ADDITIONAL PAYMENTS.—(1) 

17 The total amount of the additional payments paid to an 

18 employee under this section for any 12-month period may 

19 not exceed the lesser of the following amounts: 

20 ‘‘(A) $50,000 in fiscal year 2004, which may be 

21 adjusted annually thereafter by the Secretary, with a 

22 percentage increase equal to one-half of 1 percentage 

23 point less than the percentage by which the Employ24 ment Cost Index, published quarterly by the Bureau 

25 of Labor Statistics, for the base quarter of the year 
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1 before the preceding calendar year exceeds the Em2 ployment Cost Index for the base quarter of the second 

3 year before the preceding calendar year. 

4 ‘‘(B) The amount equal to 50 percent of the em5 ployee’s annual rate of basic pay. 

6 For purposes of this paragraph, the term ‘base quarter’ has 

7 the meaning given such term by section 5302(3). 

8 ‘‘(2) An employee appointed under this section is not 

9 eligible for any bonus, monetary award, or other monetary 

10 incentive for service except for payments authorized under 

11 this section. 

12 ‘‘(3) Notwithstanding any other provision of this sub13 section or of section 5307, no additional payments may be 

14 paid to an employee under this section in any calendar 

15 year if, or to the extent that, the employee’s total annual 

16 compensation will exceed the maximum amount of total an17 nual compensation payable at the salary set in accordance 

18 with section 104 of title 3. 

19 ‘‘(e) SAVINGS PROVISIONS.—In the event that the Sec20 retary terminates this program, in the case of an employee 

21 who, on the day before the termination of the program, is 

22 serving in a position pursuant to an appointment under 

23 this section—
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1 ‘‘(1) the termination of the program does not ter2 minate the employee’s employment in that position 

3 before the expiration of the lesser of—

4 ‘‘(A) the period for which the employee was 

5 appointed; or 

6 ‘‘(B) the period to which the employee’s 

7 service is limited under subsection (c), including 

8 any extension made under this section before the 

9 termination of the program; and 

10 ‘‘(2) the rate of basic pay prescribed for the posi11 tion under this section may not be reduced as long as 

12 the employee continues to serve in the position with13 out a break in service. 

14 ‘‘§ 9904. Employment of older Americans 

15 ‘‘(a) IN GENERAL.—Notwithstanding any other provi16 sion of law, the Secretary may appoint older Americans 

17 into positions in the excepted service for a period not to 

18 exceed 2 years, provided that—

19 ‘‘(1) any such appointment shall not result in—

20 ‘‘(A) the displacement of individuals cur21 rently employed by the Department of Defense 

22 (including partial displacement through reduc23 tion of nonovertime hours, wages, or employment 

24 benefits); or 
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1 ‘‘(B) the employment of any individual 

2 when any other person is in a reduction-in-force 

3 status from the same or substantially equivalent 

4 job within the Department of Defense; and 

5 ‘‘(2) the individual to be appointed is otherwise 

6 qualified for the position, as determined by the Sec7 retary. 

8 ‘‘(b) EFFECT ON EXISTING RETIREMENT BENEFITS.—

9 Notwithstanding any other provision of law, an individual 

10 appointed pursuant to subsection (a) who otherwise is re11 ceiving an annuity, pension, social security payment, re12 tired pay, or other similar payment shall not have the 

13 amount of said annuity, pension, social security, or other 

14 similar payment reduced as a result of such employment. 

15 ‘‘(c) EXTENSION OF APPOINTMENT.—Notwithstanding 

16 subsection (a), the Secretary may extend an appointment 

17 made pursuant to this section for up to an additional 2 

18 years if the individual employee possesses unique knowledge 

19 or abilities that are not otherwise available to the Depart20 ment of Defense. 

21 ‘‘(d) DEFINITION.—For purposes of this section, the 

22 term ‘older American’ means any citizen of the United 

23 States who is at least 55 years of age. 
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1 ‘‘§ 9905. Special pay and benefits for certain employ2 ees outside the United States 

3 ‘‘The Secretary may provide to certain civilian em4 ployees of the Department of Defense assigned to activities 

5 outside the United States as determined by the Secretary 

6 to be in support of Department of Defense activities abroad 

7 hazardous to life or health or so specialized because of secu8 rity requirements as to be clearly distinguishable from nor9 mal Government employment—

10 ‘‘(1) allowances and benefits—

11 ‘‘(A) comparable to those provided by the 

12 Secretary of State to members of the Foreign 

13 Service under chapter 9 of title I of the Foreign 

14 Service Act of 1980 (Public Law 96–465, 22 

15 U.S.C. 4081 et seq.) or any other provision of 

16 law; or 

17 ‘‘(B) comparable to those provided by the 

18 Director of Central Intelligence to personnel of 

19 the Central Intelligence Agency; and

20 ‘‘(2) special retirement accrual benefits and dis21 ability in the same manner provided for by the Cen22 tral Intelligence Agency Retirement Act (50 U.S.C. 

23 2001 et seq.) and in section 18 of the Central Intel24 ligence Agency Act of 1949 (50 U.S.C. 403r).’’. 
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1 (2) The table of chapters for part III of such title is 

2 amended by adding at the end of subpart I the following 

3 new item:

‘‘99. Department of Defense National Security Personnel System ....... 9901’’.

4 (b) IMPACT ON DEPARTMENT OF DEFENSE CIVILIAN

5 PERSONNEL.—(1) Any exercise of authority under chapter 

6 99 of such title (as added by subsection (a)), including 

7 under any system established under such chapter, shall be 

8 in conformance with the requirements of this subsection. 

9 (2) No other provision of this Act or of any amendment 

10 made by this Act may be construed or applied in a manner 

11 so as to limit, supersede, or otherwise affect the provisions 

12 of this section, except to the extent that it does so by specific 

13 reference to this section. 

14 TITLE II—DEPARTMENT OF 

15 DEFENSE CIVILIAN PERSONNEL 

16 SEC. 201. MODIFICATION OF THE OVERTIME PAY CAP. 

17 Section 5542(a)(2) of title 5, United States Code, is 

18 amended—

19 (1) by inserting ‘‘the greater of’’ before ‘‘one and 

20 one-half’’; and 

21 (2) by inserting ‘‘or the hourly rate of basic pay 

22 of the employee’’ after ‘‘law)’’ the second place it ap23 pears.
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1 SEC. 202. CIVIL SERVICE RETIREMENT SYSTEM COMPUTA2 TION FOR PART-TIME SERVICE. 

3 Section 8339(p) of title 5, United States Code, is 

4 amended by adding at the end the following new para5 graphs: 

6 ‘‘(3) In the administration of paragraph (1)—

7 ‘‘(A) subparagraph (A) of such paragraph shall 

8 apply with respect to pay for service performed before, 

9 on, or after April 7, 1986; and 

10 ‘‘(B) subparagraph (B) of such paragraph—

11 ‘‘(i) shall apply with respect to that portion 

12 of any annuity which is attributable to service 

13 performed on or after April 7, 1986; and 

14 ‘‘(ii) shall not apply with respect to that 

15 portion of any annuity which is attributable to 

16 service performed before April 7, 1986. 

17 ‘‘(4) Paragraph (3) shall be effective with respect to 

18 any annuity entitlement to which is based on a separation 

19 from service occurring on or after the date of the enactment 

20 of this paragraph.’’. 

21 SEC. 203. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVIL22 IAN EMPLOYEES. 

23 (a) IN GENERAL.—Subsection (b) of section 6323 of 

24 title 5, United States Code, is amended—

25 (1) in paragraph (2)—
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1 (A) by redesignating subparagraphs (A) 

2 and (B) as clauses (i) and (ii), respectively, and 

3 at the end of clause (ii), as so redesignated, by 

4 inserting ‘‘or’’; and 

5 (B) by inserting ‘‘(A)’’ after ‘‘(2)’’; and 

6 (2) by inserting the following before the text be7 ginning with ‘‘is entitled’’: 

8 ‘‘(B) performs full-time military service as a re9 sult of a call or order to active duty in support of a 

10 contingency operation as defined in section 

11 101(a)(13) of title 10;’’. 

12 (b) EFFECTIVE DATE.—The amendments made by sub13 section (a) shall apply to military service performed on or 

14 after the date of the enactment of this Act.

15 SEC. 204. COMMON OCCUPATIONAL AND HEALTH STAND16 ARDS FOR DIFFERENTIAL PAYMENTS AS A 

17 CONSEQUENCE OF EXPOSURE TO ASBESTOS. 

18 (a) PREVAILING RATE SYSTEMS.—Section 5343(c)(4) 

19 of title 5, United States Code, is amended by inserting be20 fore the semicolon at the end the following: ‘‘, and for any 

21 hardship or hazard related to asbestos, such differentials 

22 shall be determined by applying occupational safety and 

23 health standards consistent with the permissible exposure 

24 limit promulgated by the Secretary of Labor under the Oc25 cupational Safety and Health Act of 1970’’. 
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1 (b) GENERAL SCHEDULE PAY RATES.—Section 

2 5545(d) of such title is amended by inserting before the pe3 riod at the end of the first sentence the following: ‘‘, and 

4 for any hardship or hazard related to asbestos, such dif5 ferentials shall be determined by applying occupational 

6 safety and health standards consistent with the permissible 

7 exposure limit promulgated by the Secretary of Labor under 

8 the Occupational Safety and Health Act of 1970’’. 

9 (c) APPLICABILITY.—Subject to any vested constitu10 tional property rights, any administrative or judicial deter11 mination after the date of enactment of this Act concerning 

12 backpay for a differential established under section 

13 5343(c)(4) or 5545(d) of such title shall be based on occupa14 tional safety and health standards described in the amend15 ments made by subsections (a) and (b). 

16 SEC. 205. INCREASE IN ANNUAL STUDENT LOAN REPAY17 MENT AUTHORITY. 

18 Section 5379(b)(2)(A) of title 5, United States Code, 

19 is amended by striking ‘‘$6,000’’ and inserting ‘‘$10,000’’. 

20 SEC. 206. AUTHORIZATION FOR CABINET SECRETARIES, 

21 SECRETARIES OF MILITARY DEPARTMENTS, 

22 AND HEADS OF EXECUTIVE AGENCIES TO BE 

23 PAID ON A BIWEEKLY BASIS. 

24 (a) AUTHORIZATION.—Section 5504 of title 5, United 

25 States Code, is amended—
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1 (1) by redesignating subsection (c) as subsection 

2 (d); 

3 (2) by striking the last sentence of both sub4 section (a) and subsection (b); and 

5 (3) by inserting after subsection (b) the fol6 lowing: 

7 ‘‘(c) For the purposes of this section: 

8 ‘‘(1) The term ‘employee’ means—

9 ‘‘(A) an employee in or under an Executive 

10 agency; 

11 ‘‘(B) an employee in or under the Office of 

12 the Architect of the Capitol, the Botanic Garden, 

13 and the Library of Congress, for whom a basic 

14 administrative workweek is established under 

15 section 6101(a)(5) of this title; and 

16 ‘‘(C) an individual employed by the govern17 ment of the District of Columbia. 

18 ‘‘(2) The term ‘employee’ does not include—

19 ‘‘(A) an employee on the Isthmus of Pan20 ama in the service of the Panama Canal Com21 mission; or 

22 ‘‘(B) an employee or individual excluded 

23 from the definition of employee in section 

24 5541(2) of this title other than an employee or 
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1 individual excluded by clauses (ii), (iii), and 

2 (xiv) through (xvii) of such section. 

3 ‘‘(3) Notwithstanding paragraph (2), an indi4 vidual who otherwise would be excluded from the defi5 nition of employee shall be deemed to be an employee 

6 for purposes of this section if the individual’s employ7 ing agency so elects, under guidelines in regulations 

8 promulgated by the Office of Personnel Management 

9 under subsection (d)(2).’’. 

10 (b) GUIDELINES.—Subsection (d) of section 5504 of 

11 such title, as redesignated by subsection (a), is amended—

12 (1) by inserting ‘‘(1)’’ after ‘‘(d)’’; and 

13 (2) by adding at the end the following new para14 graph: 

15 ‘‘(2) The Office of Personnel Management shall provide 

16 guidelines by regulation for exemptions to be made by the 

17 heads of agencies under subsection (c)(3). Such guidelines 

18 shall provide for such exemptions only under exceptional 

19 circumstances.’’. 

20 SEC. 207. ADDITIONAL CLASSES OF INDIVIDUALS ELIGIBLE 

21 TO PARTICIPATE IN THE FEDERAL LONG22 TERM CARE INSURANCE PROGRAM. 

23 (a) CERTAIN EMPLOYEES OF THE DISTRICT OF CO24 LUMBIA GOVERNMENT.—Section 9001(1) of title 5, United 
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1 States Code, is amended by striking ‘‘2105(c),’’ and all that 

2 follows and inserting ‘‘2105(c).’’. 

3 (b) FORMER FEDERAL EMPLOYEES WHO WOULD BE

4 ELIGIBLE TO BEGIN RECEIVING AN ANNUITY UPON AT5 TAINING THE REQUISITE MINIMUM AGE.—Section 9001(2) 

6 of title 5, United States Code, is amended—

7 (1) in subparagraph (A), by striking ‘‘and’’ at 

8 the end; 

9 (2) in subparagraph (B), by striking the period 

10 and inserting ‘‘; and’’; and 

11 (3) by adding at the end the following: 

12 ‘‘(C) any former employee who, on the basis 

13 of his or her service, would meet all requirements 

14 for being considered an ‘annuitant’ within the 

15 meaning of subchapter III of chapter 83, chapter 

16 84, or any other retirement system for employees 

17 of the Government, but for the fact that such 

18 former employee has not attained the minimum 

19 age for title to annuity.’’. 

20 (c) RESERVISTS TRANSFERRED TO THE RETIRED RE21 SERVE WHO ARE UNDER AGE 60.—Section 9001(4) of title 

22 5, United States Code, is amended by striking ‘‘including’’ 

23 and all that follows through ‘‘who has’’ and inserting ‘‘and 

24 a member who has been transferred to the Retired Reserve 
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1 and who would be entitled to retired pay under chapter 

2 1223 of title 10 but for not having’’. 

3 SEC. 208. CLARIFICATION TO HATCH ACT; LIMITATION ON 

4 DISCLOSURE OF CERTAIN RECORDS. 

5 (a) CLARIFICATION TO HATCH ACT.—No Federal em6 ployee or individual who voluntarily separates from the 

7 civil service (including by transferring to an international 

8 organization in the circumstances described in section 

9 3582(a) of title 5, United States Code) shall be subject to 

10 enforcement of the provisions of section 7326 of such title 

11 (including any loss of rights under subchapter IV of chapter 

12 35 of such title resulting from any proceeding under such 

13 section 7326), except that this subsection shall not apply 

14 in the event that such employee or individual subsequently 

15 becomes reemployed in the civil service. The preceding sen16 tence shall apply to any complaint which is filed with or 

17 pending before the Merit Systems Protection Board after 

18 the date of the enactment of this Act. 

19 (b) LIMITATION ON DISCLOSURE OF CERTAIN

20 RECORDS.—Notwithstanding any other provision of law, 

21 rule, or regulation, nothing described in paragraph (2) or 

22 (3) of use ‘‘q’’ of the proposed revisions published in the 

23 Federal Register on July 12, 2001 (66 Fed. Reg. 36613) 

24 shall be considered to constitute a routine use of records 

25 maintained by the Office of Special Counsel. 
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1 (c) DEFINITIONS.—For purposes of this section—

2 (1) the term ‘‘Federal employee or individual’’ 

3 means any employee or individual, as referred to in 

4 section 7326 of title 5, United States Code; 

5 (2) the term ‘‘civil service’’ has the meaning 

6 given such term by section 2101 of title 5, United 

7 States Code; 

8 (3) the term ‘‘international organization’’ has 

9 the meaning given such term by section 3581 of title 

10 5, United States Code; and 

11 (4) the terms ‘‘routine use’’ and ‘‘record’’ have 

12 the respective meanings given such terms under sec13 tion 552a(a) of title 5, United States Code. 

14 SEC. 209. SENIOR EXECUTIVE SERVICE AND PERFORMANCE. 

15 (a) SENIOR EXECUTIVE PAY.—Chapter 53 of title 5, 

16 United States Code, is amended—

17 (1) in section 5304—

18 (A) in subsection (g)(2)—

19 (i) in subparagraph (A) by striking 

20 ‘‘subparagraphs (A)–(E)’’ and inserting 

21 ‘‘subparagraphs (A)–(D)’’; and 

22 (ii) in subparagraph (B) by striking 

23 ‘‘subsection (h)(1)(F)’’ and inserting ‘‘sub24 section (h)(1)(D)’’; 

25 (B) in subsection (h)(1)—
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1 (i) by striking subparagraphs (B) and 

2 (C); 

3 (ii) by redesignating subparagraphs 

4 (D), (E), and (F) as subparagraphs (B), 

5 (C), and (D), respectively; 

6 (iii) in clause (ii) by striking ‘‘or’’ at 

7 the end; 

8 (iv) in clause (iii) by striking the pe9 riod and inserting a semicolon; and 

10 (v) by adding at the end the following 

11 new clauses: 

12 ‘‘(iv) a Senior Executive Service position under 

13 section 3132; 

14 ‘‘(v) a position in the Federal Bureau of Inves15 tigation and Drug Enforcement Administration Sen16 ior Executive Service under section 3151; or 

17 ‘‘(vi) a position in a system equivalent to the 

18 system in clause (iv), as determined by the Presi19 dent’s Pay Agent designated under subsection (d).’’; 

20 and 

21 (C) in subsection (h)(2)(B)—

22 (i) in clause (i)—

23 (I) by striking ‘‘subparagraphs 

24 (A) through (E)’’ and inserting ‘‘sub25 paragraphs (A) through (C)’’; and 
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1 (II) by striking ‘‘clause (i) or 

2 (ii)’’ and inserting ‘‘clause (i), (ii), 

3 (iii), (iv), (v), or (vii)’’; and 

4 (ii) in clause (ii)—

5 (I) by striking ‘‘paragraph 

6 (1)(F)’’ and inserting ‘‘paragraph 

7 (1)(D)’’; and 

8 (II) by striking ‘‘clause (i) or 

9 (ii)’’ and inserting ‘‘clause (i), (ii), 

10 (iii), (iv), (v), or (vi)’’; 

11 (2) by amending section 5382 to read as follows: 

12 ‘‘§ 5382. Establishment of rates of pay for the Senior 

13 Executive Service 

14 ‘‘(a) Subject to regulations prescribed by the Office of 

15 Personnel Management, there shall be established a range 

16 of rates of basic pay for the Senior Executive Service, and 

17 each senior executive shall be paid at one of the rates within 

18 the range, based on individual performance, contribution 

19 to the agency’s performance, or both, as determined under 

20 a rigorous performance management system. The lowest 

21 rate of the range shall not be less than the minimum rate 

22 of basic pay payable under section 5376, and the highest 

23 rate, for any position under this system or an equivalent 

24 system as determined by the President’s Pay Agent des25 ignated under section 5304(d), shall not exceed the rate for 
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1 level III of the Executive Schedule. The payment of the rates 

2 shall not be subject to the pay limitation of section 5306(e) 

3 or 5373. 

4 ‘‘(b) Notwithstanding the provisions of subsection (a), 

5 the applicable maximum shall be level II of the Executive 

6 Schedule for any agency that is certified under section 5307 

7 as having a performance appraisal system which, as de8 signed and applied, makes meaningful distinctions based 

9 on relative performance. 

10 ‘‘(c) No employee may suffer a reduction in pay by 

11 reason of transfer from an agency with an applicable max12 imum rate of pay prescribed under subsection (b) to an 

13 agency with an applicable maximum rate of pay prescribed 

14 under subsection (a).’’; and 

15 (3) in section 5383—

16 (A) in subsection (a) by striking ‘‘which of 

17 the rates established under section 5382 of this 

18 title’’ and inserting ‘‘which of the rates within a 

19 range established under section 5382’’; and 

20 (B) in subsection (c) by striking ‘‘for any 

21 pay adjustment under section 5382 of this title’’ 

22 and inserting ‘‘as provided in regulations pre23 scribed by the Office under section 5385’’. 
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1 (b) POST-EMPLOYMENT RESTRICTIONS.—(1) Clause 

2 (ii) of section 207(c)(2)(A) of title 18, United States Code 

3 is amended to read as follows: 

4 ‘‘(ii) employed in a position which is not 

5 referred to in clause (i) and for which that per6 son is paid at a rate of basic pay which is equal 

7 to or greater than 96 percent of the rate of basic 

8 pay for level II of the Executive Schedule, or, for 

9 a period of 2 years following the enactment of 

10 the Federal Employees Pay for Performance Act 

11 of 2003, a person who, on the day prior to the 

12 enactment of that Act, was employed in a posi13 tion which is not referred to in clause (i) and for 

14 which the rate of basic pay, exclusive of any lo15 cality-based pay adjustment under section 5304 

16 or section 5304a of title 5, was equal to or great17 er than the rate of basic pay payable for level 5 

18 of the Senior Executive Service on the day prior 

19 to the enactment of that Act,’’. 

20 (2) Subchapter I of chapter 73 of title 5, United States 

21 Code, is amended by inserting at the end the following new 

22 section: 

23 ‘‘§ 7302. Post-employment notification 

24 ‘‘(a) Not later than the effective date of the amend25 ments made by sections 3 and 4 of the Federal Employees 
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1 Pay for Performance Act of 2003, or 180 days after the 

2 date of enactment of that Act, whichever is later, the Office 

3 of Personnel Management shall, in consultation with the At4 torney General and the Office of Government Ethics, pro5 mulgate regulations requiring that each Executive branch 

6 agency notify any employee of that agency who is subject 

7 to the provisions of section 207(c)(1) of title 18, as a result 

8 of the amendment to section 207(c)(2)(A)(ii) of that title 

9 by that Act. 

10 ‘‘(b) The regulations shall require that notice be given 

11 before, or as part of, the action that affects the employee’s 

12 coverage under section 207(c)(1) of title 18, by virtue of the 

13 provisions of section 207(c)(2)(A)(ii) of that title, and 

14 again when employment or service in the covered position 

15 is terminated.’’. 

16 (c) CLERICAL AMENDMENTS.—(1) The table of sections 

17 for chapter 53 of title 5, United States Code, is amended 

18 by striking the item relating to section 5382 and inserting 

19 the following:

‘‘5382. Establishment of rates of pay for the Senior Executive Service.’’.

20 (2) The table of sections for chapter 73 of title 5, 

21 United States Code, is amended by adding after the item 

22 relating to section 7301 the following:

‘‘7302. Post-employment notification.’’.

23 (d) EFFECTIVE DATE AND APPLICABILITY.—(1) The 

24 amendments made by this section shall take effect on the 
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1 first day of the first pay period beginning on or after the 

2 first January 1 following the date of enactment of this sec3 tion. 

4 (2) The amendments made by subsection (a) may not 

5 result in a reduction in the rate of basic pay for any senior 

6 executive during the first year after the effective date of 

7 those amendments. 

8 (3) For the purposes of paragraph (2), the rate of basic 

9 pay for a senior executive shall be deemed to be the rate 

10 of basic pay set for the senior executive under section 5383 

11 of title 5, United States Code, plus applicable locality pay 

12 paid to that senior executive, as of the date of enactment 

13 of this Act. 

14 SEC. 210. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE 

15 SYSTEMS IN DEMONSTRATION PROJECTS. 

16 A pay-for-performance system may not be initiated 

17 under chapter 47 of title 5, United States Code, after the 

18 date of enactment of this Act, unless it incorporates the fol19 lowing elements:

20 (1) adherence to merit principles set forth in sec21 tion 2301 of such title; 

22 (2) a fair, credible, and transparent employee 

23 performance appraisal system; 
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1 (3) a link between elements of the pay-for-per2 formance system, the employee performance appraisal 

3 system, and the agency’s strategic plan; 

4 (4) a means for ensuring employee involvement 

5 in the design and implementation of the system; 

6 (5) adequate training and retraining for super7 visors, managers, and employees in the implementa8 tion and operation of the pay-for-performance system; 

9 (6) a process for ensuring ongoing performance 

10 feedback and dialogue between supervisors, managers, 

11 and employees throughout the appraisal period, and 

12 setting timetables for review; 

13 (7) effective safeguards to ensure that the man14 agement of the system is fair and equitable and based 

15 on employee performance; and 

16 (8) a means for ensuring that adequate agency 

17 resources are allocated for the design, implementation, 

18 and administration of the pay-for-performance sys19 tem. 

20 SEC. 211. FEDERAL FLEXIBLE BENEFITS PLAN ADMINISTRA21 TIVE COSTS. 

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of law, an agency or other employing entity of the Gov24 ernment which provides or plans to provide a flexible spend25 ing account option for its employees shall not impose any 
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1 fee with respect to any of its employees in order to defray 

2 the administrative costs associated therewith. 

3 (b) OFFSET OF ADMINISTRATIVE COSTS.—Each such 

4 agency or employing entity that offers a flexible spending 

5 account option under a program established or adminis6 tered by the Office of Personnel Management shall periodi7 cally forward to such Office, or entity designated by such 

8 Office, the amount necessary to offset the administrative 

9 costs of such program which are attributable to such agency. 

10 (c) REPORTS.—(1) The Office shall submit a report 

11 to the Committee on Government Reform of the House of 

12 Representatives and the Committee on Governmental Af13 fairs of the Senate no later than March 31, 2004, specifying 

14 the administrative costs associated with the Government15 wide program (referred to in subsection (b)) for fiscal year 

16 2003, as well as the projected administrative costs of such 

17 program for each of the 5 fiscal years thereafter. 

18 (2) At the end of each of the first 3 calendar years 

19 in which an agency or other employing entity offers a flexi20 ble spending account option under this section, such agency 

21 or entity shall submit a report to the Office of Management 

22 and Budget showing the amount of its employment tax sav23 ings in such year which are attributable to such option, 

24 net of administrative fees paid under section (b).
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1 SEC. 212. NONREDUCTION IN PAY WHILE FEDERAL EM2 PLOYEE IS SERVING ON ACTIVE DUTY IN A 

3 RESERVE COMPONENT OF THE UNIFORMED 

4 SERVICES. 

5 (a) IN GENERAL.—Subchapter IV of chapter 55 of title 

6 5, United States Code, is amended by adding at the end 

7 the following new section: 

8 ‘‘§ 5538. Nonreduction in pay while serving on active 

9 duty in a reserve component 

10 ‘‘(a) An employee who is also a member of a reserve 

11 component and is absent from a position of employment 

12 with the Federal Government under a call or order to serve 

13 on active duty for a period of more than 30 days shall be 

14 entitled to receive, for each pay period described in sub15 section (b), an amount equal to the difference (if any) be16 tween—

17 ‘‘(1) the amount of civilian basic pay that would 

18 otherwise have been payable to the employee for such 

19 pay period if the employee’s civilian employment 

20 with the Government had not been interrupted by the 

21 service on active duty; and 

22 ‘‘(2) the amount of military compensation that 

23 is payable to the employee for the service on active 

24 duty and is allocable to such pay period. 

25 ‘‘(b)(1) Amounts under this section shall be payable 

26 with respect to each pay period (which would otherwise 
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1 apply if the employee’s civilian employment had not been 

2 interrupted) that occurs—

3 ‘‘(A) while the employee serves on active duty for 

4 a period of more than 30 days; 

5 ‘‘(B) while the employee is hospitalized for, or 

6 convalescing from, an illness or injury incurred in, or 

7 aggravated during, the performance of such active 

8 duty; or 

9 ‘‘(C) during the 14-day period beginning at the 

10 end of such active duty or the end of the period re11 ferred to in subparagraph (B). 

12 ‘‘(2) Paragraph (1) shall not apply with respect to a 

13 pay period for which the employee receives civilian basic 

14 pay (including by taking any annual, military, or other 

15 paid leave) to which the employee is entitled by virtue of 

16 the employee’s civilian employment with the Government. 

17 ‘‘(c) Any amount payable under this section to an em18 ployee shall be paid—

19 ‘‘(1) by employing agency of the employee; 

20 ‘‘(2) from the appropriations or fund that would 

21 be used to pay the employee if the employee were in 

22 a pay status; and 

23 ‘‘(3) to the extent practicable, at the same time 

24 and in the same manner as would civilian basic pay 
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1 if the employee’s civilian employment had not been 

2 interrupted. 

3 ‘‘(d) In consultation with the Secretary of Defense, the 

4 Office of Personnel Management shall prescribe such regula5 tions as may be necessary to carry out this section. 

6 ‘‘(e) In consultation with the Office of Personnel Man7 agement, the head of each employing agency shall prescribe 

8 procedures to ensure that the rights under this section apply 

9 to the employees of such agency. 

10 ‘‘(f) In this section: 

11 ‘‘(1) The terms ‘active duty for a period of more 

12 than 30 days’, ‘member’, and ‘reserve component’ 

13 have the meanings given such terms in section 101 of 

14 title 37. 

15 ‘‘(2) The term ‘civilian basic pay’ includes any 

16 amount payable under section 5304 of this title. 

17 ‘‘(3) The term ‘employing agency’, as used with 

18 respect to an employee entitled to any payments 

19 under this section, means the agency with respect to 

20 which the employee has reemployment rights under

21 chapter 43 of title 38. The term ‘agency’ has the 

22 meaning given such term in subparagraph (C) of sec23 tion 2302(a)(2) of this title, except that the term in24 cludes Government corporations and agencies ex25 cluded by clause (i) or (ii) of such subparagraph. 
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1 ‘‘(4) The term ‘military compensation’ has the 

2 meaning given the term ‘pay’ in section 101(21) of 

3 title 37, except that the term includes allowances pro4 vided under chapter 7 of such title.’’. 

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

6 chapter 55 of title 5, United States Code, is amended by 

7 inserting after the item relating to section 5537 the fol8 lowing:

‘‘5538. Nonreduction in pay while serving on active duty in a reserve component.’’.

9 (c) APPLICATION OF AMENDMENT.—Section 5538 of 

10 title 5, United States Code, as added by subsection (a), shall 

11 apply with respect to pay periods (as described in sub12 section (b) of such section) beginning on or after the date 

13 of the enactment of this Act. 

14 SEC. 213. EMPLOYEE SURVEYS. 

15 (a) IN GENERAL.—Each agency shall conduct an an16 nual survey of its employees (including survey questions 

17 unique to the agency and questions prescribed under sub18 section (b)) to assess—

19 (1) leadership and management practices that 

20 contribute to agency performance; and 

21 (2) employee satisfaction with—

22 (A) leadership policies and practices; 

23 (B) work environment; 
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1 (C) rewards and recognition for professional 

2 accomplishment and personal contributions to 

3 achieving organizational mission; 

4 (D) opportunity for professional develop5 ment and growth; and 

6 (E) opportunity to contribute to achieving 

7 organizational mission. 

8 (b) REGULATIONS.—The Office of Personnel Manage9 ment shall issue regulations prescribing survey questions 

10 that should appear on all agency surveys under subsection 

11 (a) in order to allow a comparison across agencies. 

12 (c) AVAILABILITY OF RESULTS.—The results of the 

13 agency surveys under subsection (a) shall be made available 

14 to the public and posted on the website of the agency in15 volved, unless the head of such agency determines that doing 

16 so would jeopardize or negatively impact national security. 

17 (d) AGENCY DEFINED.—For purposes of this section, 

18 the term ‘‘agency’’ means an Executive agency (as defined 

19 by section 105 of title 5, United States Code). 
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1 TITLE III—PROVISIONS RELAT2 ING TO THE SECURITIES AND 

3 EXCHANGE COMMISSION AND 

4 THE NATIONAL AERONAUTICS 

5 AND SPACE ADMINISTRATION 

6 Subtitle A—Securities and 

7 Exchange Commission 

8 SEC. 301. SECURITIES AND EXCHANGE COMMISSION. 

9 (a) IN GENERAL.—Subchapter I of chapter 31 of title 

10 5, United States Code, is amended by adding at the end 

11 the following: 

12 ‘‘§ 3114. Appointment of accountants, economists, and 

13 examiners by the Securities and Exchange 

14 Commission 

15 ‘‘(a) APPLICABILITY.—This section applies with re16 spect to any position of accountant, economist, and securi17 ties compliance examiner at the Commission that is in the 

18 competitive service. 

19 ‘‘(b) APPOINTMENT AUTHORITY.—

20 ‘‘(1) IN GENERAL.—The Commission may ap21 point candidates to any position described in sub22 section (a)—

23 ‘‘(A) in accordance with the statutes, rules, 

24 and regulations governing appointments in the 

25 excepted service; and 
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1 ‘‘(B) notwithstanding any statutes, rules, 

2 and regulations governing appointments in the 

3 competitive service. 

4 ‘‘(2) RULE OF CONSTRUCTION.—The appoint5 ment of a candidate to a position under authority of 

6 this subsection shall not be considered to cause such 

7 position to be converted from the competitive service 

8 to the excepted service. 

9 ‘‘(c) REPORTS.—No later than 90 days after the end 

10 of fiscal year 2003 (for fiscal year 2003) and 90 days after 

11 the end of fiscal year 2005 (for fiscal years 2004 and 2005), 

12 the Commission shall submit a report with respect to its 

13 exercise of the authority granted by subsection (b) during 

14 such fiscal years to the Committee on Government Reform 

15 and the Committee on Financial Services of the House of 

16 Representatives and the Committee on Governmental Af17 fairs and the Committee on Banking, Housing, and Urban 

18 Affairs of the Senate. Such reports shall describe the changes 

19 in the hiring process authorized by such subsection, includ20 ing relevant information related to—

21 ‘‘(1) the quality of candidates; 

22 ‘‘(2) the procedures used by the Commission to 

23 select candidates through the streamlined hiring proc24 ess; 
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1 ‘‘(3) the numbers, types, and grades of employees 

2 hired under the authority; 

3 ‘‘(4) any benefits or shortcomings associated with 

4 the use of the authority; 

5 ‘‘(5) the effect of the exercise of the authority on 

6 the hiring of veterans and other demographic groups; 

7 and 

8 ‘‘(6) the way in which managers were trained in 

9 the administration of the streamlined hiring system. 

10 ‘‘(d) COMMISSION DEFINED.—For purposes of this sec11 tion, the term ‘Commission’ means the Security and Ex12 change Commission.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections for 

14 chapter 31 of title 5, United States Code, is amended by 

15 inserting after the item relating to section 3113 the fol16 lowing:

‘‘3114. Appointment of accountants, economists, and examiners by the Securities 

and Exchange Commission.’’.

17 Subtitle B—National Aeronautics 

18 and Space Administration 

19 SEC. 311. WORKFORCE AUTHORITIES AND PERSONNEL PRO20 VISIONS. 

21 (a) IN GENERAL.—Subpart I of part III of title 5, 

22 United States Code, is amended by inserting after chapter 

23 97, as added by section 841(a)(2) of the Homeland Security
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1 Act of 2002 (Public Law 107–296; 116 Stat. 2229), the fol2 lowing:

3 ‘‘CHAPTER 98—NATIONAL AERONAUTICS 

4 AND SPACE ADMINISTRATION

‘‘SUBCHAPTER I—WORKFORCE AUTHORITIES 

‘‘Sec. 

‘‘9801. Definitions. 

‘‘9802. Planning, notification, and reporting requirements. 

‘‘9803. Workforce authorities. 

‘‘9804. Recruitment, redesignation, and relocation bonuses. 

‘‘9805. Retention bonuses. 

‘‘9806. Term appointments. 

‘‘9807. Pay authority for critical positions. 

‘‘9808. Assignments of intergovernmental personnel. 

‘‘9809. Enhanced demonstration project authority. 

‘‘9810. Voluntary separation incentive payments. 

‘‘9811. Limitations relating to bonuses. 

‘‘SUBCHAPTER II—PERSONNEL PROVISIONS 

‘‘9831. Definitions. 

‘‘9832. NASA-Industry exchange program. 

‘‘9833. Science and technology scholarship program. 

‘‘9834. Distinguished scholar appointment authority. 

‘‘9835. Travel and transportation expenses of certain new appointees. 

‘‘9836. Annual leave enhancements. 

‘‘9837. Limited appointments to Senior Executive Service positions. 

‘‘9838. Superior qualifications pay.

5 ‘‘SUBCHAPTER I—WORKFORCE AUTHORITIES 

6 ‘‘§ 9801. Definitions 

7 ‘‘For purposes of this subchapter—

8 ‘‘(1) the term ‘Administration’ means the Na9 tional Aeronautics and Space Administration; 

10 ‘‘(2) the term ‘Administrator’ means the Admin11 istrator of the National Aeronautics and Space Ad12 ministration; 

13 ‘‘(3) the term ‘critical need’ means a specific and 

14 important requirement of the Administration’s mis-
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1 sion that the Administration is unable to fulfill be2 cause the Administration lacks the appropriate em3 ployees because— 

4 ‘‘(A) of the inability to fill positions; or 

5 ‘‘(B) employees do not possess the requisite 

6 skills; 

7 ‘‘(4) the term ‘employee’ means an individual 

8 employed in or under the Administration; 

9 ‘‘(5) the term ‘workforce plan’ means the plan re10 quired under section 9802(a); 

11 ‘‘(6) the term ‘appropriate committees of Con12 gress’ means— 

13 ‘‘(A) the Committees on Government Re14 form, Science, and Appropriations of the House 

15 of Representatives; and 

16 ‘‘(B) the Committees on Governmental Af17 fairs, Commerce, Science, and Transportation, 

18 and Appropriations of the Senate; and 

19 ‘‘(7) the term ‘redesignation bonus’ means a 

20 bonus under section 9804 paid to an individual de21 scribed in subsection (a)(2) thereof. 

22 ‘‘§ 9802. Planning, notification, and reporting require23 ments 

24 ‘‘(a) Not later than 90 days before exercising any of 

25 the workforce authorities under this subchapter, the Admin-
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1 istrator shall submit a written plan to the appropriate com2 mittees of Congress. A plan under this subchapter may not 

3 be implemented without the approval of the Office of Per4 sonnel Management. 

5 ‘‘(b) A workforce plan shall include a description of—

6 ‘‘(1) each critical need of the Administration and 

7 the criteria used in the identification of that need; 

8 ‘‘(2)(A) the functions, approximate number, and 

9 classes or other categories of positions or employees 

10 that—

11 ‘‘(i) address critical needs; and 

12 ‘‘(ii) would be eligible for each authority 

13 proposed to be exercised under section 9803; and 

14 ‘‘(B) how the exercise of those authorities with 

15 respect to the eligible positions or employees involved 

16 would address each critical need identified under 

17 paragraph (1); 

18 ‘‘(3)(A) any critical need identified under para19 graph (1) which would not be addressed by the au20 thorities made available under this subchapter; and 

21 ‘‘(B) the reasons why those needs would not be 

22 so addressed; 

23 ‘‘(4) the specific criteria to be used in deter24 mining which individuals may receive the benefits de25 scribed under sections 9804, 9805 (including the cri-
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1 teria for granting bonuses in the absence of a critical 

2 need), and 9810, and how the level of those benefits 

3 will be determined; 

4 ‘‘(5) the safeguards or other measures that will 

5 be applied to ensure that this subchapter is carried 

6 out in a manner consistent with merit system prin7 ciples; 

8 ‘‘(6) the means by which employees will be af9 forded the notification required under subsections (c) 

10 and (d)(1)(B); 

11 ‘‘(7) the methods that will be used to determine 

12 if the authorities exercised under this subchapter have 

13 successfully addressed each critical need identified 

14 under paragraph (1); and 

15 ‘‘(8)(A) the recruitment methods used by the Ad16 ministration before the enactment of this chapter to 

17 recruit highly qualified individuals; and 

18 ‘‘(B) the changes the Administration will imple19 ment after the enactment of this chapter in order to 

20 improve its recruitment of highly qualified individ21 uals, including how it intends to use—

22 ‘‘(i) nongovernmental recruitment or place23 ment agencies; and 

24 ‘‘(ii) Internet technologies. 
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1 ‘‘(c) Not later than 60 days before first exercising any 

2 of the workforce authorities made available under this sub3 chapter, the Administrator shall provide to all employees 

4 the workforce plan and any additional information which 

5 the Administrator considers appropriate. 

6 ‘‘(d)(1)(A) The Administrator may submit any modi7 fications to the workforce plan to the Office of Personnel 

8 Management. Modifications to the workforce plan may not 

9 be implemented without the approval of the Office of Per10 sonnel Management. 

11 ‘‘(B) Not later than 60 days before implementing any 

12 such modifications, the Administrator shall provide an ap13 propriately modified plan to all employees of the Adminis14 tration and to the appropriate committees of Congress. 

15 ‘‘(2) Any reference in this subchapter or any other pro16 vision of law to the workforce plan shall be considered to 

17 include any modification made in accordance with this sub18 section. 

19 ‘‘(e) Before submitting any written plan under sub20 section (a) (or modification under subsection (d)) to the Of21 fice of Personnel Management, the Administrator shall—

22 ‘‘(1) provide to each employee representative rep23 resenting any employees who might be affected by 

24 such plan (or modification) a copy of the proposed 

25 plan (or modification);
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1 ‘‘(2) give each representative 30 calendar days 

2 (unless extraordinary circumstances require earlier 

3 action) to review and make recommendations with re4 spect to the proposed plan (or modification); and 

5 ‘‘(3) give any recommendations received from 

6 any such representatives under paragraph (2) full 

7 and fair consideration in deciding whether or how to 

8 proceed with respect to the proposed plan (or modi9 fication). 

10 ‘‘(f) None of the workforce authorities made available 

11 under this subchapter may be exercised in a manner incon12 sistent with the workforce plan. 

13 ‘‘(g) Whenever the Administration submits its perform14 ance plan under section 1115 of title 31 to the Office of 

15 Management and Budget for any year, the Administration 

16 shall at the same time submit a copy of such plan to the 

17 appropriate committees of Congress. 

18 ‘‘(h) Not later than 6 years after date of enactment 

19 of this subchapter, the Administrator shall submit to the 

20 appropriate committees of Congress an evaluation and 

21 analysis of the actions taken by the Administration under 

22 this subchapter, including—

23 ‘‘(1) an evaluation, using the methods described 

24 in subsection (b)(7), of whether the authorities exer-
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1 cised under this subchapter successfully addressed 

2 each critical need identified under subsection (b)(1); 

3 ‘‘(2) to the extent that they did not, an expla4 nation of the reasons why any critical need (apart 

5 from the ones under subsection (b)(3)) was not suc6 cessfully addressed; and 

7 ‘‘(3) recommendations for how the Administra8 tion could address any remaining critical need and 

9 could prevent those that have been addressed from re10 curring. 

11 ‘‘§ 9803. Workforce authorities 

12 ‘‘(a) The workforce authorities under this subchapter 

13 are the following: 

14 ‘‘(1) The authority to pay recruitment, redesig15 nation, and relocation bonuses under section 9804. 

16 ‘‘(2) The authority to pay retention bonuses 

17 under section 9805. 

18 ‘‘(3) The authority to make term appointments 

19 and to take related personnel actions under section 

20 9806. 

21 ‘‘(4) The authority to fix rates of basic pay for 

22 critical positions under section 9807. 

23 ‘‘(5) The authority to extend intergovernmental 

24 personnel act assignments under section 9808. 
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1 ‘‘(6) The authority to apply subchapter II of 

2 chapter 35 in accordance with section 9810. 

3 ‘‘(b) No authority under this subchapter may be exer4 cised with respect to any officer who is appointed by the 

5 President, by and with the advice and consent of the Senate. 

6 ‘‘(c) Unless specifically stated otherwise, all authorities 

7 provided under this subchapter are subject to section 5307.

8 ‘‘§ 9804. Recruitment, redesignation, and relocation 

9 bonuses 

10 ‘‘(a) Notwithstanding section 5753, the Administrator 

11 may pay a bonus to an individual, in accordance with the 

12 workforce plan and subject to the limitations in this section, 

13 if— 

14 ‘‘(1) the Administrator determines that the Ad15 ministration would be likely, in the absence of a 

16 bonus, to encounter difficulty in filling a position; 

17 and 

18 ‘‘(2) the individual—

19 ‘‘(A) is newly appointed as an employee of 

20 the Federal Government; 

21 ‘‘(B) is currently employed by the Federal 

22 Government and is newly appointed to another 

23 position in the same geographic area; or 

24 ‘‘(C) is currently employed by the Federal 

25 Government and is required to relocate to a dif-
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1 ferent geographic area to accept a position with 

2 the Administration. 

3 ‘‘(b) If the position is described as addressing a critical 

4 need in the workforce plan under section 9802(b)(2)(A), the 

5 amount of a bonus may not exceed—

6 ‘‘(1) 50 percent of the employee’s annual rate of 

7 basic pay (including comparability payments under 

8 sections 5304 and 5304a) as of the beginning of the 

9 service period multiplied by the service period speci10 fied under subsection (d)(1)(B)(i); or 

11 ‘‘(2) 100 percent of the employee’s annual rate of 

12 basic pay (including comparability payments under 

13 sections 5304 and 5304a) as of the beginning of the 

14 service period. 

15 ‘‘(c) If the position is not described as addressing a 

16 critical need in the workforce plan under section 

17 9802(b)(2)(A), the amount of a bonus may not exceed—

18 ‘‘(1) 25 percent of the employee’s annual rate of 

19 basic pay (including comparability payments under 

20 sections 5304 and 5304a) as of the beginning of the 

21 service period multiplied by the service period speci22 fied under subsection (d)(1)(B)(i); or 

23 ‘‘(2) 100 percent of the employee’s annual rate of 

24 basic pay (including comparability payments under 
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1 sections 5304 and 5304a) as of the beginning of the 

2 service period. 

3 ‘‘(d)(1)(A) Payment of a bonus under this section shall 

4 be contingent upon the individual entering into a service 

5 agreement with the Administration. 

6 ‘‘(B) At a minimum, the service agreement shall in7 clude—

8 ‘‘(i) the required service period; 

9 ‘‘(ii) the method of payment, including a pay10 ment schedule, which may include a lump-sum pay11 ment, installment payments, or a combination there12 of; 

13 ‘‘(iii) the amount of the bonus and the basis for 

14 calculating that amount; and 

15 ‘‘(iv) the conditions under which the agreement 

16 may be terminated before the agreed-upon service pe17 riod has been completed, and the effect of the termi18 nation. 

19 ‘‘(2) For purposes of determinations under subsections 

20 (b)(1) and (c)(1), the employee’s service period shall be ex21 pressed as the number equal to the full years and twelfth 

22 parts thereof, rounding the fractional part of a month to 

23 the nearest twelfth part of a year. The service period may 

24 not be less than 6 months and may not exceed 4 years.
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1 ‘‘(3) A bonus under this section may not be considered 

2 to be part of the basic pay of an employee. 

3 ‘‘(e) Before paying a bonus under this section, the Ad4 ministration shall establish a plan for paying recruitment, 

5 redesignation, and relocation bonuses, subject to approval 

6 by the Office of Personnel Management. 

7 ‘‘(f) The Administrator shall submit to the appropriate 

8 committees of Congress, not later than February 28 of each 

9 of the next 10 years beginning after the date of enactment 

10 of this subchapter, a summary of all bonuses paid under 

11 subsections (b) and (c) during the preceding year. Such 

12 summary shall include the number of bonuses paid, the 

13 total amount of bonuses paid, and the average percentage 

14 used in calculating the total average bonus amount, under 

15 each such subsection. 

16 ‘‘§ 9805. Retention bonuses 

17 ‘‘(a) Notwithstanding section 5754, the Administrator 

18 may pay a bonus to an employee, in accordance with the 

19 workforce plan and subject to the limitations in this section, 

20 if the Administrator determines that—

21 ‘‘(1) the unusually high or unique qualifications 

22 of the employee or a special need of the Administra23 tion for the employee’s services makes it essential to 

24 retain the employee; and 
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1 ‘‘(2) the employee would be likely to leave in the 

2 absence of a retention bonus. 

3 ‘‘(b) If the position is described as addressing a critical 

4 need in the workforce plan under section 9802(b)(2)(A), the 

5 amount of a bonus may not exceed 50 percent of the employ6 ee’s annual rate of basic pay (including comparability pay7 ments under sections 5304 and 5304a). 

8 ‘‘(c) If the position is not described as addressing a 

9 critical need in the workforce plan under section 

10 9802(b)(2)(A), the amount of a bonus may not exceed 25 

11 percent of the employee’s annual rate of basic pay (includ12 ing comparability payments under sections 5304 and 

13 5304a). 

14 ‘‘(d)(1)(A) Payment of a bonus under this section shall 

15 be contingent upon the employee entering into a service 

16 agreement with the Administration. 

17 ‘‘(B) At a minimum, the service agreement shall in18 clude—

19 ‘‘(i) the required service period; 

20 ‘‘(ii) the method of payment, including a pay21 ment schedule, which may include a lump-sum pay22 ment, installment payments, or a combination there23 of; 

24 ‘‘(iii) the amount of the bonus and the basis for 

25 calculating the amount; and 
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1 ‘‘(iv) the conditions under which the agreement 

2 may be terminated before the agreed-upon service pe3 riod has been completed, and the effect of the termi4 nation. 

5 ‘‘(2) The employee’s service period shall be expressed 

6 as the number equal to the full years and twelfth parts 

7 thereof, rounding the fractional part of a month to the near8 est twelfth part of a year. The service period may not be 

9 less than 6 months and may not exceed 4 years. 

10 ‘‘(3) Notwithstanding paragraph (1), a service agree11 ment is not required if the Administration pays a bonus 

12 in biweekly installments and sets the installment payment 

13 at the full bonus percentage rate established for the em14 ployee, with no portion of the bonus deferred. In this case, 

15 the Administration shall inform the employee in writing 

16 of any decision to change the retention bonus payments. The 

17 employee shall continue to accrue entitlement to the reten18 tion bonus through the end of the pay period in which such 

19 written notice is provided. 

20 ‘‘(e) A bonus under this section may not be considered 

21 to be part of the basic pay of an employee. 

22 ‘‘(f) An employee is not entitled to a retention bonus 

23 under this section during a service period previously estab24 lished for that employee under section 5753 or under section 

25 9804. 
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1 ‘‘(g) The Administrator shall submit to the appro2 priate committees of Congress, not later than February 28 

3 of each of the next 10 years beginning after the date of en4 actment of this subchapter, a summary of all bonuses paid 

5 under subsections (b) and (c) during the preceding year. 

6 Such summary shall include the number of bonuses paid, 

7 the total amount of bonuses paid, and the average percent8 age used in calculating the total average bonus amount, 

9 under each such subsection. 

10 ‘‘§ 9806. Term appointments 

11 ‘‘(a) The Administrator may authorize term appoint12 ments within the Administration under subchapter I of 

13 chapter 33, for a period of not less than 1 year and not 

14 more than 6 years. 

15 ‘‘(b) Notwithstanding chapter 33 or any other provi16 sion of law relating to the examination, certification, and 

17 appointment of individuals in the competitive service, the 

18 Administrator may convert an employee serving under a 

19 term appointment to a permanent appointment in the com20 petitive service within the Administration without further 

21 competition if—

22 ‘‘(1) such individual was appointed under open, 

23 competitive examination under subchapter I of chap24 ter 33 to the term position; 
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1 ‘‘(2) the announcement for the term appointment 

2 from which the conversion is made stated that there 

3 was potential for subsequent conversion to a career4 conditional or career appointment; 

5 ‘‘(3) the employee has completed at least 2 years 

6 of current continuous service under a term appoint7 ment in the competitive service; 

8 ‘‘(4) the employee’s performance under such term 

9 appointment was at least fully successful or equiva10 lent; and 

11 ‘‘(5) the position to which such employee is being 

12 converted under this section is in the same occupa13 tional series, is in the same geographic location, and 

14 provides no greater promotion potential than the term 

15 position for which the competitive examination was 

16 conducted. 

17 ‘‘(c) Notwithstanding chapter 33 or any other provi18 sion of law relating to the examination, certification, and 

19 appointment of individuals in the competitive service, the 

20 Administrator may convert an employee serving under a 

21 term appointment to a permanent appointment in the com22 petitive service within the Administration through internal 

23 competitive promotion procedures if the conditions under 

24 paragraphs (1) through (4) of subsection (b) are met.
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1 ‘‘(d) An employee converted under this section becomes 

2 a career-conditional employee, unless the employee has oth3 erwise completed the service requirements for career tenure. 

4 ‘‘(e) An employee converted to career or career-condi5 tional employment under this section acquires competitive 

6 status upon conversion. 

7 ‘‘(f) The Administrator shall submit to the appropriate 

8 committees of Congress, not later than February 28 of each 

9 of the next 10 years beginning after the date of enactment 

10 of this subchapter—

11 ‘‘(1) the total number of term appointments con12 verted during the previous calendar year; and 

13 ‘‘(2) of that total number, the number of conver14 sions that were made to address a critical need de15 scribed in the Workforce Plan pursuant to section 

16 9802(b)(2). 

17 ‘‘§ 9807. Pay authority for critical positions 

18 ‘‘(a) In this section, the term ‘position’ means—

19 ‘‘(1) a position to which chapter 51 applies, in20 cluding a position in the Senior Executive Service; 

21 ‘‘(2) a position under the Executive Schedule 

22 under sections 5312 through 5317; 

23 ‘‘(3) a position established under section 3104; or 

24 ‘‘(4) a senior-level position to which section 

25 5376(a)(1) applies. 
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1 ‘‘(b) Authority under this section—

2 ‘‘(1) may be exercised only with respect to a po3 sition that— 

4 ‘‘(A) is described as addressing a critical 

5 need in the workforce plan under section 

6 9802(b)(2)(A); and 

7 ‘‘(B) requires expertise of an extremely high 

8 level in a scientific, technical, professional, or 

9 administrative field; 

10 ‘‘(2) may be exercised only to the extent nec11 essary to recruit or retain an individual exceptionally 

12 well qualified for the position; and 

13 ‘‘(3) may be exercised only in retaining employ14 ees of the Administration or in appointing individ15 uals who were not employees of another Federal agen16 cy as defined under section 5102(a)(1). 

17 ‘‘(c)(1) Notwithstanding section 5377, the Adminis18 trator may fix the rate of basic pay for a position in the 

19 Administration in accordance with this section. The Ad20 ministrator may not delegate this authority. 

21 ‘‘(2) The number of positions with pay fixed under this 

22 section may not exceed 10 at any time. 

23 ‘‘(d)(1) The rate of basic pay fixed under this section 

24 may not be less than the rate of basic pay (including any 

25 comparability payments) which would otherwise be payable 
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1 for the position involved if this section had never been en2 acted. 

3 ‘‘(2) The annual rate of basic pay fixed under this sec4 tion may not exceed the per annum rate of salary payable 

5 under section 104 of title 3. 

6 ‘‘(3) Notwithstanding any provision of section 5307, 

7 in the case of an employee who, during any calendar year, 

8 is receiving pay at a rate fixed under this section, no allow9 ance, differential, bonus, award, or similar cash payment 

10 may be paid to such employee if, or to the extent that, when 

11 added to basic pay paid or payable to such employee (for 

12 service performed in such calendar year as an employee in 

13 the executive branch or as an employee outside the executive 

14 branch to whom chapter 51 applies), such payment would 

15 cause the total to exceed the per annum rate of salary which, 

16 as of the end of such calendar year, is payable under section 

17 104 of title 3. 

18 ‘‘(e) The Administrator shall submit to the appro19 priate committees of Congress, not later than February 28 

20 of each of the next 10 years beginning after the date of en21 actment of this subchapter—

22 ‘‘(1) the number of positions for which the rate 

23 of basic pay was fixed under this section during the 

24 preceding year; and 
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1 ‘‘(2) the number of positions for which a rate of 

2 basic pay under this section was terminated during 

3 the preceding year. 

4 ‘‘§ 9808. Assignments of intergovernmental personnel 

5 ‘‘For purposes of applying the third sentence of section 

6 3372(a) (relating to the authority of the head of a Federal 

7 agency to extend the period of an employee’s assignment 

8 to or from a State or local government, institution of higher 

9 education, or other organization), the Administrator may, 

10 with the concurrence of the employee and the government 

11 or organization concerned, take any action which would be 

12 allowable if such sentence had been amended by striking 

13 ‘two’ and inserting ‘four’.

14 ‘‘§ 9809. Enhanced demonstration project authority 

15 ‘‘When conducting a demonstration project at the Ad16 ministration, section 4703(d)(1)(A) may be applied by sub17 stituting ‘such numbers of individuals as determined by the 

18 Administrator’ for ‘not more than 5,000 individuals’. 

19 ‘‘§ 9810. Voluntary separation incentive payments 

20 ‘‘(a) In applying subchapter II of chapter 35, the Ad21 ministrator may provide for voluntary separation incentive 

22 payments in excess of the dollar-amount limitation that 

23 would otherwise apply under section 3523(b)(3)(B), subject 

24 to subsection (b). 
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1 ‘‘(b) Voluntary separation incentive payments de2 scribed in subsection (a)—

3 ‘‘(1) may not exceed 50 percent of the annual 

4 rate of basic pay of the employee receiving such pay5 ments (computed disregarding any comparability 

6 payments under sections 5304–5304a); 

7 ‘‘(2) may not, in any calendar year, be made to 

8 more than—

9 ‘‘(A) 10 employees; or 

10 ‘‘(B) such greater number of employees as 

11 the Administrator may, with the approval of the 

12 Office of Management and Budget, establish in 

13 lieu of the number specified in subparagraph (A) 

14 following notification to the appropriate commit15 tees of Congress; 

16 ‘‘(3) may not be made to an employee if the em17 ployee has within the last 12 months received, or if 

18 the employee is then receiving, a bonus or allowance 

19 under section 5753 or 5754 or under section 9804 or 

20 9805; and 

21 ‘‘(4) may be made only if the position in which 

22 the employee is serving addresses a critical need iden23 tified in the workforce plan pursuant to section 

24 9802(b)(2).
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1 ‘‘(c)(1) The proposed use of workforce authorities in 

2 this section shall be included in the plan required by section 

3 3522. 

4 ‘‘(2) Whenever the Office of Personnel Management ap5 proves the Administration’s plan required in such section 

6 3522, the Administration shall submit a copy of the ap7 proved plan to the appropriate committees of Congress 

8 within 15 days after the date on which it is so approved. 

9 ‘‘§ 9811. Limitations relating to bonuses 

10 ‘‘(a) Of the total amount in bonuses awarded under 

11 sections 9804 and 9805, respectively, in any year, not to 

12 exceed 15 percent of any such total amount may be awarded 

13 to supervisors (within the meaning of section 7103(a)(10)). 

14 ‘‘(b) A separate appropriations account shall be main15 tained for such bonuses. 

16 ‘‘SUBCHAPTER II—PERSONNEL PROVISIONS 

17 ‘‘§ 9831. Definitions 

18 ‘‘For purposes of this subchapter, the terms ‘Adminis19 tration’ and ‘Administrator’ have the meanings set forth 

20 in section 9801. 

21 ‘‘§ 9832. NASA-Industry exchange program 

22 ‘‘(a) For purposes of this section, the term ‘detail’ 

23 means—

24 ‘‘(1) the assignment or loan of an employee of 

25 the Administration to a private sector organization 
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1 without a change of position from the Administra2 tion, or 

3 ‘‘(2) the assignment or loan of an employee of a 

4 private sector organization to the Administration 

5 without a change of position from the private sector 

6 organization that employs the individual, 

7 whichever is appropriate in the context in which such term 

8 is used. 

9 ‘‘(b)(1) On request from or with the agreement of a 

10 private sector organization, and with the consent of the em11 ployee concerned, the Administrator may arrange for the 

12 assignment of an employee of the Administration to a pri13 vate sector organization or an employee of a private sector 

14 organization to the Administration. An employee of the Ad15 ministration shall be eligible to participate in this program 

16 only if the employee is employed at the GS–11 level or above 

17 (or equivalent) and is serving under a career or career-con18 ditional appointment or an appointment of equivalent ten19 ure in the excepted service. 

20 ‘‘(2) The Administrator shall provide for a written 

21 agreement between the Administration and the employee 

22 concerned regarding the terms and conditions of the em23 ployee’s assignment. The agreement shall—
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1 ‘‘(A) require the employee to serve in the Admin2 istration, upon completion of the assignment, for a 

3 period equal to the length of the assignment; and 

4 ‘‘(B) provide that, in the event the employee fails 

5 to carry out the agreement (except for good and suffi6 cient reason, as determined by the Administrator), the 

7 employee shall be liable to the United States for pay8 ment of all expenses of the assignment. 

9 An amount under subparagraph (B) shall be treated as a 

10 debt due the United States. 

11 ‘‘(3) Assignments may be terminated by the Adminis12 tration or the private sector organization concerned for any 

13 reason at any time. 

14 ‘‘(4) Assignments under this section shall be for a pe15 riod of between 6 months and 1 year, and may be extended 

16 in 3-month increments for a total of not more than 1 addi17 tional year, except that no assignment under this section 

18 may commence after the end of the 5-year period beginning 

19 on the date of the enactment of this section. 

20 ‘‘(c)(1) An employee of the Administration who is as21 signed to a private sector organization under this section 

22 is deemed, during the period of the assignment, to be on 

23 detail to a regular work assignment in the Administration. 

24 ‘‘(2) Notwithstanding any other provision of law, an 

25 employee of the Administration who is assigned to a private 
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1 sector organization under this section is entitled to retain 

2 coverage, rights, and benefits under subchapter I of chapter 

3 81, and employment during the assignment is deemed em4 ployment by the United States, except that, if the employee 

5 or the employee’s dependents receive from the private sector 

6 organization any payment under an insurance policy for 

7 which the premium is wholly paid by the private sector or8 ganization, or other benefit of any kind on account of the 

9 same injury or death, then, the amount of such payment 

10 or benefit shall be credited against any compensation other11 wise payable under subchapter I of chapter 81. 

12 ‘‘(3) The assignment of an employee to a private sector 

13 organization under this section may be made with or with14 out reimbursement by the private sector organization for 

15 the travel and transportation expenses to or from the place 

16 of assignment, subject to the same terms and conditions as 

17 apply with respect to an employee of a Federal agency or 

18 a State or local government under section 3375, and for 

19 the pay, or a part thereof, of the employee during assign20 ment. Any reimbursements shall be credited to the appro21 priation of the Administration used for paying the travel 

22 and transportation expenses or pay. 

23 ‘‘(4) The Federal Tort Claims Act and any other Fed24 eral tort liability statute apply to an employee of the Ad25 ministration assigned to a private sector organization 
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1 under this section. The supervision of the duties of an em2 ployee of the Administration who is so assigned to a private 

3 sector organization may be governed by an agreement be4 tween the Administration and the organization. 

5 ‘‘(d)(1) An employee of a private sector organization 

6 assigned to the Administration under this section is deemed, 

7 during the period of the assignment, to be on detail to the 

8 Administration. 

9 ‘‘(2) An employee of a private sector organization as10 signed to the Administration under this section—

11 ‘‘(A) may continue to receive pay and benefits 

12 from the private sector organization from which he is 

13 assigned; 

14 ‘‘(B) is deemed, notwithstanding paragraph (1), 

15 to be an employee of the Administration for the pur16 poses of—

17 ‘‘(i) chapter 73; 

18 ‘‘(ii) sections 201, 203, 205, 207, 208, 209, 

19 603, 606, 607, 643, 654, 1905, and 1913 of title 

20 18; 

21 ‘‘(iii) sections 1343, 1344, and 1349(b) of 

22 title 31; 

23 ‘‘(iv) the Federal Tort Claims Act and any 

24 other Federal tort liability statute;
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1 ‘‘(v) the Ethics in Government Act of 1978; 

2 and 

3 ‘‘(vi) section 1043 of the Internal Revenue 

4 Code of 1986; 

5 ‘‘(C) may not have access to any trade secrets or 

6 to any other nonpublic information which is of com7 mercial value to the private sector organization from 

8 which he is assigned; and 

9 ‘‘(D) is subject to such regulations as the Presi10 dent may prescribe. 

11 The supervision of an employee of a private sector organiza12 tion assigned to the Administration under this section may 

13 be governed by agreement between the Administration and 

14 the private sector organization concerned. Such an assign15 ment may be made with or without reimbursement by the 

16 Administration for the pay, or a part thereof, of the em17 ployee during the period of assignment, or for any contribu18 tion of the private sector organization to employee benefit 

19 systems. 

20 ‘‘(3) An employee of a private sector organization as21 signed to the Administration under this section who suffers 

22 disability or dies as a result of personal injury sustained 

23 while performing duties during the assignment shall be 

24 treated, for the purpose of subchapter I of chapter 81, as 

25 an employee as defined by section 8101 who had sustained 
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1 the injury in the performance of duty, except that, if the 

2 employee or the employee’s dependents receive from the pri3 vate sector organization any payment under an insurance 

4 policy for which the premium is wholly paid by the private 

5 sector organization, or other benefit of any kind on account 

6 of the same injury or death, then, the amount of such pay7 ment or benefit shall be credited against any compensation 

8 otherwise payable under subchapter I of chapter 81. 

9 ‘‘(4) A private sector organization may not charge the 

10 Federal Government, as direct or indirect costs under a 

11 Federal contract, the costs of pay or benefits paid by the 

12 organization to an employee assigned to the Administration 

13 under this section for the period of the assignment. 

14 ‘‘(e)(1) The Administration shall, not later than Feb15 ruary 28 of each year, prepare and submit to the appro16 priate committees of Congress a report summarizing the op17 eration of this section during the preceding year. 

18 ‘‘(2) Each report shall include, with respect to the pe19 riod to which such report relates—

20 ‘‘(A) the total number of individuals assigned to, 

21 and the total number of individuals assigned from, 

22 the Administration during such period; 

23 ‘‘(B) a brief description of each assignment in24 cluded under subparagraph (A), including—
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1 ‘‘(i) the name of the assigned individual, as 

2 well as the private sector organization, to or 

3 from which such individual was assigned; 

4 ‘‘(ii) the respective positions to and from 

5 which the individual was assigned, including the 

6 duties and responsibilities and the pay grade or 

7 level associated with each; and 

8 ‘‘(iii) the duration and objectives of the in9 dividual’s assignment; and 

10 ‘‘(C) such other information as the Administra11 tion considers appropriate. 

12 ‘‘(3) A copy of each report submitted under paragraph 

13 (1)—

14 ‘‘(A) shall be published in the Federal Register; 

15 and 

16 ‘‘(B) shall be made publicly available on the 

17 Internet. 

18 ‘‘(f) The Administrator, in consultation with the Di19 rector of the Office of Personnel Management, shall prescribe 

20 regulations for the administration of this section. 

21 ‘‘(g) Not later than 4 years after the date of the enact22 ment of this section, the General Accounting Office shall 

23 prepare and submit to the appropriate committees of Con24 gress a report on the operation of this section. Such report 

25 shall include—
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1 ‘‘(1) an evaluation of the effectiveness of the pro2 gram established by this section; and 

3 ‘‘(2) a recommendation as to whether such pro4 gram should be continued (with or without modifica5 tion) or allowed to lapse. 

6 ‘‘§ 9833. Science and technology scholarship program 

7 ‘‘(a)(1) The Administrator shall establish a National 

8 Aeronautics and Space Administration Science and Tech9 nology Scholarship Program to award scholarships to indi10 viduals that is designed to recruit and prepare students for 

11 careers in the Administration. 

12 ‘‘(2) Individuals shall be selected to receive scholar13 ships under this section through a competitive process pri14 marily on the basis of academic merit, with consideration 

15 given to financial need and the goal of promoting the par16 ticipation of individuals identified in section 33 or 34 of 

17 the Science and Engineering Equal Opportunities Act. 

18 ‘‘(3) To carry out the Program the Administrator shall 

19 enter into contractual agreements with individuals selected 

20 under paragraph (2) under which the individuals agree to 

21 serve as full-time employees of the Administration, for the 

22 period described in subsection (f)(1), in positions needed by 

23 the Administration and for which the individuals are quali24 fied, in exchange for receiving a scholarship. 
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1 ‘‘(b) In order to be eligible to participate in the Pro2 gram, an individual must—

3 ‘‘(1) be enrolled or accepted for enrollment as a 

4 full-time student at an institution of higher education 

5 in an academic field or discipline described in the list 

6 made available under subsection (d); 

7 ‘‘(2) be a United States citizen; and 

8 ‘‘(3) at the time of the initial scholarship award, 

9 not be an employee (as defined in section 2105). 

10 ‘‘(c) An individual seeking a scholarship under this 

11 section shall submit an application to the Administrator 

12 at such time, in such manner, and containing such infor13 mation, agreements, or assurances as the Administrator 

14 may require. 

15 ‘‘(d) The Administrator shall make publicly available 

16 a list of academic programs and fields of study for which 

17 scholarships under the Program may be utilized and shall 

18 update the list as necessary. 

19 ‘‘(e)(1) The Administrator may provide a scholarship 

20 under the Program for an academic year if the individual 

21 applying for the scholarship has submitted to the Adminis22 trator, as part of the application required under subsection 

23 (c), a proposed academic program leading to a degree in 

24 a program or field of study on the list made available under 

25 subsection (d).
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1 ‘‘(2) An individual may not receive a scholarship 

2 under this section for more than 4 academic years, unless 

3 the Administrator grants a waiver. 

4 ‘‘(3) The dollar amount of a scholarship under this sec5 tion for an academic year shall be determined under regula6 tions issued by the Administrator, but shall in no case ex7 ceed the cost of attendance. 

8 ‘‘(4) A scholarship provided under this section may be 

9 expended for tuition, fees, and other authorized expenses as 

10 established by the Administrator by regulation. 

11 ‘‘(5) The Administrator may enter into a contractual 

12 agreement with an institution of higher education under 

13 which the amounts provided for a scholarship under this 

14 section for tuition, fees, and other authorized expenses are 

15 paid directly to the institution with respect to which the 

16 scholarship is provided. 

17 ‘‘(f)(1) The period of service for which an individual 

18 shall be obligated to serve as an employee of the Administra19 tion is, except as provided in subsection (h)(2), 24 months 

20 for each academic year for which a scholarship under this 

21 section is provided. 

22 ‘‘(2)(A) Except as provided in subparagraph (B), obli23 gated service under paragraph (1) shall begin not later than 

24 60 days after the individual obtains the educational degree 

25 for which the scholarship was provided. 
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1 ‘‘(B) The Administrator may defer the obligation of 

2 an individual to provide a period of service under para3 graph (1) if the Administrator determines that such a defer4 ral is appropriate. The Administrator shall prescribe the 

5 terms and conditions under which a service obligation may 

6 be deferred through regulation. 

7 ‘‘(g)(1) Scholarship recipients who fail to maintain a 

8 high level of academic standing, as defined by the Adminis9 trator by regulation, who are dismissed from their edu10 cational institutions for disciplinary reasons, or who volun11 tarily terminate academic training before graduation from 

12 the educational program for which the scholarship was 

13 awarded, shall be in breach of their contractual agreement 

14 and, in lieu of any service obligation arising under such 

15 agreement, shall be liable to the United States for repay16 ment within 1 year after the date of default of all scholar17 ship funds paid to them and to the institution of higher 

18 education on their behalf under the agreement, except as 

19 provided in subsection (h)(2). The repayment period may 

20 be extended by the Administrator when determined to be 

21 necessary, as established by regulation. 

22 ‘‘(2) Scholarship recipients who, for any reason, fail 

23 to begin or complete their service obligation after comple24 tion of academic training, or fail to comply with the terms 

25 and conditions of deferment established by the Adminis-
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1 trator pursuant to subsection (f)(2)(B), shall be in breach 

2 of their contractual agreement. When recipients breach their 

3 agreements for the reasons stated in the preceding sentence, 

4 the recipient shall be liable to the United States for an 

5 amount equal to—

6 ‘‘(A) the total amount of scholarships received by 

7 such individual under this section; plus 

8 ‘‘(B) the interest on the amounts of such awards 

9 which would be payable if at the time the awards 

10 were received they were loans bearing interest at the 

11 maximum legal prevailing rate, as determined by the 

12 Treasurer of the United States, 

13 multiplied by 3. 

14 ‘‘(h)(1) Any obligation of an individual incurred 

15 under the Program (or a contractual agreement thereunder) 

16 for service or payment shall be canceled upon the death of 

17 the individual. 

18 ‘‘(2) The Administrator shall by regulation provide for 

19 the partial or total waiver or suspension of any obligation 

20 of service or payment incurred by an individual under the 

21 Program (or a contractual agreement thereunder) whenever 

22 compliance by the individual is impossible or would involve 

23 extreme hardship to the individual, or if enforcement of 

24 such obligation with respect to the individual would be con25 trary to the best interests of the Government. 
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1 ‘‘(i) For purposes of this section—

2 ‘‘(1) the term ‘cost of attendance’ has the mean3 ing given that term in section 472 of the Higher Edu4 cation Act of 1965; 

5 ‘‘(2) the term ‘institution of higher education’ 

6 has the meaning given that term in section 101(a) of 

7 the Higher Education Act of 1965; and 

8 ‘‘(3) the term ‘Program’ means the National Aer9 onautics and Space Administration Science and 

10 Technology Scholarship Program established under 

11 this section. 

12 ‘‘(j)(1) There is authorized to be appropriated to the 

13 Administration for the Program $10,000,000 for each fiscal 

14 year. 

15 ‘‘(2) Amounts appropriated under this section shall re16 main available for 2 fiscal years. 

17 ‘‘§ 9834. Distinguished scholar appointment authority 

18 ‘‘(a) In this section—

19 ‘‘(1) the term ‘professional position’ means a po20 sition that is classified to an occupational series iden21 tified by the Office of Personnel Management as a po22 sition that—

23 ‘‘(A) requires education and training in the 

24 principles, concepts, and theories of the occupa25 tion that typically can be gained only through
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1 completion of a specified curriculum at a recog2 nized college or university; and 

3 ‘‘(B) is covered by the Group Coverage 

4 Qualification Standard for Professional and Sci5 entific Positions; and 

6 ‘‘(2) the term ‘research position’ means a posi7 tion in a professional series that primarily involves 

8 scientific inquiry or investigation, or research-type 

9 exploratory development of a creative or scientific na10 ture, where the knowledge required to perform the 

11 work successfully is acquired typically and primarily 

12 through graduate study. 

13 ‘‘(b) The Administration may appoint, without regard 

14 to the provisions of sections 3304(b) and 3309 through 3318, 

15 candidates directly to General Schedule professional posi16 tions in the Administration for which public notice has been 

17 given, if—

18 ‘‘(1) with respect to a position at the GS–7 level, 

19 the individual—

20 ‘‘(A) received, from an accredited institu21 tion authorized to grant baccalaureate degrees, a 

22 baccalaureate degree in a field of study for which 

23 possession of that degree in conjunction with 

24 academic achievements meets the qualification 

25 standards as prescribed by the Office of Per-
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1 sonnel Management for the position to which the 

2 individual is being appointed; and 

3 ‘‘(B) achieved a cumulative grade point av4 erage of 3.0 or higher on a 4.0 scale and a grade 

5 point average of 3.5 or higher for courses in the 

6 field of study required to qualify for the position; 

7 ‘‘(2) with respect to a position at the GS–9 level, 

8 the individual—

9 ‘‘(A) received, from an accredited institu10 tion authorized to grant graduate degrees, a 

11 graduate degree in a field of study for which pos12 session of that degree meets the qualification 

13 standards at this grade level as prescribed by the 

14 Office of Personnel Management for the position 

15 to which the individual is being appointed; and 

16 ‘‘(B) achieved a cumulative grade point av17 erage of 3.5 or higher on a 4.0 scale in graduate 

18 coursework in the field of study required for the 

19 position; 

20 ‘‘(3) with respect to a position at the GS–11 

21 level, the individual—

22 ‘‘(A) received, from an accredited institu23 tion authorized to grant graduate degrees, a 

24 graduate degree in a field of study for which pos25 session of that degree meets the qualification 
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1 standards at this grade level as prescribed by the 

2 Office of Personnel Management for the position 

3 to which the individual is being appointed; and 

4 ‘‘(B) achieved a cumulative grade point av5 erage of 3.5 or higher on a 4.0 scale in graduate 

6 coursework in the field of study required for the 

7 position; or 

8 ‘‘(4) with respect to a research position at the 

9 GS–12 level, the individual—

10 ‘‘(A) received, from an accredited institu11 tion authorized to grant graduate degrees, a 

12 graduate degree in a field of study for which pos13 session of that degree meets the qualification 

14 standards at this grade level as prescribed by the 

15 Office of Personnel Management for the position 

16 to which the individual is being appointed; and 

17 ‘‘(B) achieved a cumulative grade point av18 erage of 3.5 or higher on a 4.0 scale in graduate 

19 coursework in the field of study required for the 

20 position. 

21 ‘‘(c) Veterans’ preference procedures shall apply when 

22 selecting candidates under this section. Preference eligibles 

23 who meet the criteria for distinguished scholar appoint24 ments shall be considered ahead of nonpreference eligibles. 
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1 ‘‘(d) An appointment made under this authority shall 

2 be a career-conditional appointment in the competitive civil 

3 service. 

4 ‘‘§ 9835. Travel and transportation expenses of certain 

5 new appointees 

6 ‘‘(a) In this section, the term ‘new appointee’ means—

7 ‘‘(1) a person newly appointed or reinstated to 

8 Federal service to the Administration to—

9 ‘‘(A) a career or career-conditional appoint10 ment; 

11 ‘‘(B) a term appointment; 

12 ‘‘(C) an excepted service appointment that 

13 provides for noncompetitive conversion to a ca14 reer or career-conditional appointment; 

15 ‘‘(D) a career or limited term Senior Execu16 tive Service appointment; 

17 ‘‘(E) an appointment made under section 

18 203(c)(2)(A) of the National Aeronautics and 

19 Space Act of 1958 (42 U.S.C. 2473(c)(2)(A)); 

20 ‘‘(F) an appointment to a position estab21 lished under section 3104; or 

22 ‘‘(G) an appointment to a position estab23 lished under section 5108; or 

24 ‘‘(2) a student trainee who, upon completion of 

25 academic work, is converted to an appointment in the 
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1 Administration that is identified in paragraph (1) in 

2 accordance with an appropriate authority. 

3 ‘‘(b) The Administrator may pay the travel, transpor4 tation, and relocation expenses of a new appointee to the 

5 same extent, in the same manner, and subject to the same 

6 conditions as the payment of such expenses under sections 

7 5724, 5724a, 5724b, and 5724c to an employee transferred 

8 in the interests of the United States Government. 

9 ‘‘(c) The Administrator shall submit to the appro10 priate committees of Congress, not later than February 28 

11 of each of the next 10 years beginning after the date of en12 actment of this subchapter—

13 ‘‘(1) the average payment for travel and trans14 portation expenses of certain new appointees provided 

15 under this section during the preceding year; and 

16 ‘‘(2) the highest payment for travel and trans17 portation expenses to an individual appointee pro18 vided under this section during the preceding year. 

19 ‘‘§ 9836. Annual leave enhancements 

20 ‘‘(a)(1) In this subsection—

21 ‘‘(A) the term ‘newly appointed employee’ means 

22 an individual who is first appointed—

23 ‘‘(i) regardless of tenure, as an employee of 

24 the Federal Government; or
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1 ‘‘(ii) as an employee of the Federal Govern2 ment following a break in service of at least 90 

3 days after that individual’s last period of Fed4 eral employment, other than—

5 ‘‘(I) employment under the Student 

6 Educational Employment Program admin7 istered by the Office of Personnel Manage8 ment; 

9 ‘‘(II) employment as a law clerk train10 ee; 

11 ‘‘(III) employment under a short-term 

12 temporary appointing authority while a 

13 student during periods of vacation from the 

14 educational institution at which the student 

15 is enrolled; 

16 ‘‘(IV) employment under a provisional 

17 appointment if the new appointment is per18 manent and immediately follows the provi19 sional appointment; or 

20 ‘‘(V) employment under a temporary 

21 appointment that is neither full-time nor 

22 the principal employment of the individual; 

23 ‘‘(B) the term ‘period of qualified non-Federal 

24 service’ means any period of service performed by an 

25 individual that—
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1 ‘‘(i) was performed in a position the duties 

2 of which were directly related to the duties of the 

3 position in the Administration to which that in4 dividual will fill as a newly appointed employee; 

5 and 

6 ‘‘(ii) except for this section, would not oth7 erwise be service performed by an employee for 

8 purposes of section 6303; and 

9 ‘‘(C) the term ‘directly related to the duties of the 

10 position’ means duties and responsibilities in the 

11 same line of work which require similar qualifica12 tions. 

13 ‘‘(2)(A) For purposes of section 6303, the Adminis14 trator may deem a period of qualified non-Federal service 

15 performed by a newly appointed employee to be a period 

16 of service of equal length performed as an employee. 

17 ‘‘(B) A period deemed by the Administrator under sub18 paragraph (A) shall continue to apply to the employee dur19 ing—

20 ‘‘(i) the period of Federal service in which the 

21 deeming is made; and 

22 ‘‘(ii) any subsequent period of Federal service. 

23 ‘‘(3)(A) Notwithstanding section 6303(a), the annual 

24 leave accrual rate for an employee of the Administration 

25 in a position paid under section 5376 or 5383, or for an 
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1 employee in an equivalent category whose rate of basic pay 

2 is greater than the rate payable at GS–15, step 10, shall 

3 be 1 day for each full biweekly pay period.

4 ‘‘(B) The accrual rate established under this para5 graph shall continue to apply to the employee during—

6 ‘‘(i) the period of Federal service in which such 

7 accrual rate first applies; and 

8 ‘‘(ii) any subsequent period of Federal service. 

9 ‘‘§ 9837. Limited appointments to Senior Executive 

10 Service positions 

11 ‘‘(a) In this section—

12 ‘‘(1) the term ‘career reserved position’ means a 

13 position in the Administration designated under sec14 tion 3132(b) which may be filled only by—

15 ‘‘(A) a career appointee; or 

16 ‘‘(B) a limited emergency appointee or a 

17 limited term appointee—

18 ‘‘(i) who, immediately before entering 

19 the career reserved position, was serving 

20 under a career or career-conditional ap21 pointment outside the Senior Executive 

22 Service; or 

23 ‘‘(ii) whose limited emergency or lim24 ited term appointment is approved in ad-
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1 vance by the Office of Personnel Manage2 ment; 

3 ‘‘(2) the term ‘limited emergency appointee’ has 

4 the meaning given under section 3132; and 

5 ‘‘(3) the term ‘limited term appointee’ means an 

6 individual appointed to a Senior Executive Service 

7 position in the Administration to meet a bona fide 

8 temporary need, as determined by the Administrator. 

9 ‘‘(b) The number of career reserved positions which are 

10 filled by an appointee as described under subsection 

11 (a)(1)(B) may not exceed 10 percent of the total number 

12 of Senior Executive Service positions allocated to the Ad13 ministration. 

14 ‘‘(c) Notwithstanding sections 3132 and 3394(b)—

15 ‘‘(1) the Administrator may appoint an indi16 vidual to any Senior Executive Service position in 

17 the Administration as a limited term appointee under 

18 this section for a period of—

19 ‘‘(A) 4 years or less to a position the duties 

20 of which will expire at the end of such term; or 

21 ‘‘(B) 1 year or less to a position the duties 

22 of which are continuing; and 

23 ‘‘(2) in rare circumstances, the Administrator 

24 may authorize an extension of a limited appointment 

25 under—
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1 ‘‘(A) paragraph (1)(A) for a period not to 

2 exceed 2 years; and 

3 ‘‘(B) paragraph (1)(B) for a period not to 

4 exceed 1 year. 

5 ‘‘(d) A limited term appointee who has been appointed 

6 in the Administration from a career or career-conditional 

7 appointment outside the Senior Executive Service shall 

8 have reemployment rights in the agency from which ap9 pointed, or in another agency, under requirements and con10 ditions established by the Office of Personnel Management. 

11 The Office shall have the authority to direct such placement 

12 in any agency. 

13 ‘‘(e) Notwithstanding section 3394(b) and section 

14 3395—

15 ‘‘(1) a limited term appointee serving under a 

16 term prescribed under this section may be reassigned 

17 to another Senior Executive Service position in the 

18 Administration, the duties of which will expire at the 

19 end of a term of 4 years or less; and 

20 ‘‘(2) a limited term appointee serving under a 

21 term prescribed under this section may be reassigned 

22 to another continuing Senior Executive Service posi23 tion in the Administration, except that the appointee 

24 may not serve in 1 or more positions in the Adminis25 tration under such appointment in excess of 1 year,
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1 except that in rare circumstances, the Administrator 

2 may approve an extension up to an additional 1 

3 year. 

4 ‘‘(f) A limited term appointee may not serve more than 

5 7 consecutive years under any combination of limited ap6 pointments. 

7 ‘‘(g) Notwithstanding section 5384, the Administrator 

8 may authorize performance awards to limited term ap9 pointees in the Administration in the same amounts and 

10 in the same manner as career appointees. 

11 ‘‘§ 9838. Superior qualifications pay 

12 ‘‘(a) In this section the term ‘employee’ means an em13 ployee as defined under section 2105 who is employed by 

14 the Administration. 

15 ‘‘(b) Notwithstanding section 5334, the Administrator 

16 may set the pay of an employee paid under the General 

17 Schedule at any step within the pay range for the grade 

18 of the position, based on the superior qualifications of the 

19 employee, or the special need of the Administration. 

20 ‘‘(c) If an exercise of the authority under this section 

21 relates to a current employee selected for another position 

22 within the Administration, a determination shall be made 

23 that the employee’s contribution in the new position will 

24 exceed that in the former position, before setting pay under 

25 this section. 
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1 ‘‘(d) Pay as set under this section is basic pay for such 

2 purposes as pay set under section 5334. 

3 ‘‘(e) If the employee serves for at least 1 year in the 

4 position for which the pay determination under this section 

5 was made, or a successor position, the pay earned under 

6 such position may be used in succeeding actions to set pay 

7 under chapter 53. 

8 ‘‘(f) The Administrator may waive the restrictions in 

9 subsection (e), based on criteria established in the plan re10 quired under subsection (g). 

11 ‘‘(g) Before setting any employee’s pay under this sec12 tion, the Administrator shall submit a plan to the Office 

13 of Personnel Management, that includes—

14 ‘‘(1) criteria for approval of actions to set pay 

15 under this section; 

16 ‘‘(2) the level of approval required to set pay 

17 under this section; 

18 ‘‘(3) all types of actions and positions to be cov19 ered; 

20 ‘‘(4) the relationship between the exercise of au21 thority under this section and the use of other pay in22 centives; and 

23 ‘‘(5) a process to evaluate the effectiveness of this 

24 section.’’. 

25 (b) TECHNICAL AND CONFORMING AMENDMENTS.—
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1 (1) TABLE OF CHAPTERS.—The table of chapters 

2 for subchapter I of part III of title 5, United States 

3 Code, is amended by adding after the item relating to 

4 chapter 97 the following:

‘‘98. National Aeronautics and Space Administration ......................... 9801’’.

5 (2) COMPENSATION FOR CERTAIN EXCEPTED

6 PERSONNEL.—Subparagraph (A) of section 203(c)(2) 

7 of the National Aeronautics and Space Act of 1958 

8 (42 U.S.C. 2473(c)(2)(A)) is amended by striking 

9 ‘‘the highest rate of grade 18 of the General Schedule 

10 of the Classification Act of 1949, as amended,’’ and 

11 inserting ‘‘the rate of basic pay payable for level III 

12 of the Executive Schedule,’’. 

13 (3) COMPENSATION CLARIFICATION.—Section 

14 209 of title 18, United States Code, as amended by 

15 section 209(g)(2) of the E-Government Act of 2002 

16 (Public Law 107–347; 116 Stat. 2932), is amended 

17 by adding at the end the following: 

18 ‘‘(h) This section does not prohibit an employee of a 

19 private sector organization, while assigned to the National 

20 Aeronautics and Space Administration under section 9832 

21 of title 5, from continuing to receive pay and benefits from 

22 that organization in accordance with section 9832 of that 

23 title.’’. 

24 (4) CONTINUED TSP ELIGIBILITY.—Section 

25 125(c)(1) of Public Law 100–238 (5 U.S.C. 8432 
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1 note), as amended by section 209(g)(3) of the E-Gov2 ernment Act of 2002 (Public Law 107–347; 116 Stat. 

3 2932), is amended—

4 (A) in subparagraph (C), by striking ‘‘or’’ 

5 at the end; 

6 (B) in subparagraph (D), by striking ‘‘and’’ 

7 at the end and inserting ‘‘or’’; and 

8 (C) by adding at the end the following: 

9 ‘‘(E) an individual assigned from the Na10 tional Aeronautics and Space Administration to 

11 a private sector organization under section 9832 

12 of title 5, United States Code; and’’. 

13 (5) ETHICS PROVISIONS.—

14 (A) ONE-YEAR RESTRICTION ON CERTAIN

15 COMMUNICATIONS.—Section 207(c)(2)(A)(v) of 

16 title 18, United States Code, is amended by in17 serting ‘‘or section 9832’’ after ‘‘chapter 37’’. 

18 (B) DISCLOSURE OF CONFIDENTIAL INFOR19 MATION.—Section 1905 of title 18, United States 

20 Code, is amended by inserting ‘‘or section 9832’’ 

21 after ‘‘chapter 37’’. 

22 (6) CONTRACT ADVICE.—Section 207(l) of title 

23 18, United States Code, is amended by inserting ‘‘or 

24 section 9832’’ after ‘‘chapter 37’’. 
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1 (7) AMENDMENTS TO TITLE 5, UNITED STATES

2 CODE.—Title 5, United States Code, is amended—

3 (A) in section 3111(d), by inserting ‘‘or sec4 tion 9832’’ after ‘‘chapter 37’’; and 

5 (B) in section 7353(b)(4), by inserting ‘‘or 

6 section 9832’’ after ‘‘chapter 37’’. 

7 TITLE IV—HUMAN CAPITAL 

8 PERFORMANCE FUND 

9 SEC. 401. HUMAN CAPITAL PERFORMANCE FUND. 

10 (a) IN GENERAL.—Subpart D of part III of title 5, 

11 United States Code, is amended by inserting after chapter 

12 53 the following:

13 ‘‘CHAPTER 54—HUMAN CAPITAL 

14 PERFORMANCE FUND

‘‘Sec. 

‘‘5401. Purpose. 

‘‘5402. Definitions. 

‘‘5403. Human Capital Performance Fund. 

‘‘5404. Human capital performance payments. 

‘‘5405. Regulations. 

‘‘5406. Agency plan. 

‘‘5407. Nature of payment. 

‘‘5408. Appropriations.

15 ‘‘§ 5401. Purpose 

16 ‘‘The purpose of this chapter is to promote, through 

17 the creation of a Human Capital Performance Fund, great18 er performance in the Federal Government. Monies from the 

19 Fund will be used to reward agencies’ highest performing 

20 and most valuable employees. This Fund will offer Federal
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1 managers a new tool to recognize employee performance 

2 that is critical to the achievement of agency missions. 

3 ‘‘§ 5402. Definitions 

4 ‘‘For the purpose of this chapter—

5 ‘‘(1) ‘agency’ means an Executive agency under 

6 section 105, but does not include the General Account7 ing Office; 

8 ‘‘(2) ‘employee’ includes—

9 ‘‘(A) an individual paid under a statutory 

10 pay system defined in section 5302(1); 

11 ‘‘(B) a prevailing rate employee, as defined 

12 in section 5342(a)(2); and 

13 ‘‘(C) a category of employees included by 

14 the Office of Personnel Management following the 

15 review of an agency plan under section 

16 5403(b)(1); 

17 but does not include—

18 ‘‘(i) an individual paid at an annual rate 

19 of basic pay for a level of the Executive Schedule, 

20 under subchapter II of chapter 53, or at a rate 

21 provided for one of those levels under another 

22 provision of law; 

23 ‘‘(ii) a member of the Senior Executive 

24 Service paid under subchapter VIII of chapter 

25 53, or an equivalent system; 
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1 ‘‘(iii) an administrative law judge paid 

2 under section 5372; 

3 ‘‘(iv) a contract appeals board member paid 

4 under section 5372a; 

5 ‘‘(v) an administrative appeals judge paid 

6 under section 5372b; and 

7 ‘‘(vi) an individual in a position which is 

8 excepted from the competitive service because of 

9 its confidential, policy-determining, policy-mak10 ing, or policy-advocating character; and 

11 ‘‘(3) ‘Office’ means the Office of Personnel Man12 agement. 

13 ‘‘§ 5403. Human Capital Performance Fund 

14 ‘‘(a) There is hereby established the Human Capital 

15 Performance Fund, to be administered by the Office for the 

16 purpose of this chapter. 

17 ‘‘(b)(1)(A) An agency shall submit a plan as described 

18 in section 5406 to be eligible for consideration by the Office 

19 for an allocation under this section. An allocation shall be 

20 made only upon approval by the Office of an agency’s plan. 

21 ‘‘(B)(i) After the reduction for training required under 

22 section 5408, ninety percent of the remaining amount ap23 propriated to the Fund may be allocated by the Office to 

24 the agencies. Of the amount to be allocated, an agency’s pro 
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1 rata distribution may not exceed its pro rata share of Exec2 utive branch payroll. 

3 ‘‘(ii) If the Office does not allocate an agency’s full 

4 pro rata share, the undistributed amount remaining from 

5 that share will become available for distribution to other 

6 agencies, as provided in subparagraph (C). 

7 ‘‘(C)(i) After the reduction for training under section 

8 5408, ten percent of the remaining amount appropriated 

9 to the Fund, as well as the amount of the pro rata share 

10 not distributed because of an agency’s failure to submit a 

11 satisfactory plan, shall be allocated among agencies with 

12 exceptionally high-quality plans. 

13 ‘‘(ii) An agency with an exceptionally high-quality 

14 plan is eligible to receive an additional distribution in ad15 dition to its full pro rata distribution. 

16 ‘‘(2) Each agency is required to provide to the Office 

17 such payroll information as the Office specifies necessary 

18 to determine the Executive branch payroll. 

19 ‘‘§ 5404. Human capital performance payments 

20 ‘‘(a)(1) Notwithstanding any other provision of law, 

21 the Office may authorize an agency to provide human cap22 ital performance payments to individual employees based 

23 on exceptional performance contributing to the achievement 

24 of the agency mission. 
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1 ‘‘(2) The number of employees in an agency receiving 

2 payments from the Fund, in any year, shall not be more 

3 than the number equal to 15 percent of the agency’s average 

4 total civilian full- and part-time permanent employment 

5 for the previous fiscal year. 

6 ‘‘(b)(1) A human capital performance payment pro7 vided to an individual employee from the Fund, in any 

8 year, shall not exceed 10 percent of the employee’s rate of 

9 basic pay. 

10 ‘‘(2) The aggregate of an employee’s rate of basic pay, 

11 adjusted by any locality-based comparability payments, 

12 and human capital performance pay, as defined by regula13 tion, may not exceed the rate of basic pay for Executive 

14 Level IV in any year. 

15 ‘‘(3) Any human capital performance payment pro16 vided to an employee from the Fund is in addition to any 

17 annual pay adjustment (under section 5303 or any similar 

18 provision of law) and any locality-based comparability 

19 payment that may apply. 

20 ‘‘(c) No monies from the Human Capital Performance 

21 Fund may be used to pay for a new position, for other per22 formance-related payments, or for recruitment or retention 

23 incentives paid under sections 5753 and 5754. 
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1 ‘‘(d)(1) An agency may finance initial human capital 

2 performance payments using monies from the Human Cap3 ital Performance Fund, as available. 

4 ‘‘(2) In subsequent years, continuation of previously 

5 awarded human capital performance payments shall be fi6 nanced from other agency funds available for salaries and 

7 expenses. 

8 ‘‘§ 5405. Regulations 

9 ‘‘The Office shall issue such regulations as it deter10 mines to be necessary for the administration of this chapter, 

11 including the administration of the Fund. The Office’s regu12 lations shall include criteria governing—

13 ‘‘(1) an agency plan under section 5406; 

14 ‘‘(2) the allocation of monies from the Fund to 

15 agencies; 

16 ‘‘(3) the nature, extent, duration, and adjust17 ment of, and approval processes for, payments to in18 dividual employees under this chapter; 

19 ‘‘(4) the relationship to this chapter of agency 

20 performance management systems; 

21 ‘‘(5) training of supervisors, managers, and 

22 other individuals involved in the process of making 

23 performance distinctions; and
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1 ‘‘(6) the circumstances under which funds may 

2 be allocated by the Office to an agency in amounts 

3 below or in excess of the agency’s pro rata share. 

4 ‘‘§ 5406. Agency plan 

5 ‘‘(a) To be eligible for consideration by the Office for 

6 an allocation under this section, an agency shall—

7 ‘‘(1) develop a plan that incorporates the fol8 lowing elements: 

9 ‘‘(A) adherence to merit principles set forth 

10 in section 2301; 

11 ‘‘(B) a fair, credible, and transparent em12 ployee performance appraisal system; 

13 ‘‘(C) a link between the pay-for-performance 

14 system, the employee performance appraisal sys15 tem, and the agency’s strategic plan; 

16 ‘‘(D) a means for ensuring employee in17 volvement in the design and implementation of 

18 the system; 

19 ‘‘(E) adequate training and retraining for 

20 supervisors, managers, and employees in the im21 plementation and operation of the pay-for-per22 formance system; 

23 ‘‘(F) a process for ensuring ongoing per24 formance feedback and dialogue between super25 visors, managers, and employees throughout the 
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1 appraisal period, and setting timetables for re2 view; 

3 ‘‘(G) effective safeguards to ensure that the 

4 management of the system is fair and equitable 

5 and based on employee performance; and 

6 ‘‘(H) a means for ensuring that adequate 

7 agency resources are allocated for the design, im8 plementation, and administration of the pay-for9 performance system; 

10 ‘‘(2) upon approval, receive an allocation of 

11 funding from the Office; 

12 ‘‘(3) make payments to individual employees in 

13 accordance with the agency’s approved plan; and 

14 ‘‘(4) provide such information to the Office re15 garding payments made and use of funds received 

16 under this section as the Office may specify. 

17 ‘‘(b) The Office, in consultation with the Chief Human 

18 Capital Officers Council, shall review and approve an agen19 cy’s plan before the agency is eligible to receive an alloca20 tion of funding from the Office. 

21 ‘‘(c) The Chief Human Capital Officers Council shall 

22 include in its annual report to Congress under section 

23 1303(d) of the Homeland Security Act of 2002 an evalua24 tion of the formulation and implementation of agency per25 formance management systems. 
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1 ‘‘§ 5407. Nature of payment 

2 ‘‘Any payment to an employee under this section shall 

3 be part of the employee’s basic pay for the purposes of sub4 chapter III of chapter 83, and chapters 84 and 87, and 

5 for such other purposes (other than chapter 75) as the Office 

6 shall determine by regulation. 

7 ‘‘§ 5408. Appropriations 

8 ‘‘There is authorized to be appropriated $500,000,000 

9 for fiscal year 2004, and, for each subsequent fiscal year, 

10 such sums as may be necessary to carry out the provisions 

11 of this chapter. In the first year of implementation, up to 

12 10 percent of the amount appropriated to the Fund shall 

13 be available to participating agencies to train supervisors, 

14 managers, and other individuals involved in the appraisal 

15 process on using performance management systems to make 

16 meaningful distinctions in employee performance and on 

17 the use of the Fund.’’. 

18 (b) CLERICAL AMENDMENT.—The table of chapters for 

19 part III of title 5, United States Code, is amended by in20 serting after the item relating to chapter 53 the following:

‘‘54. Human Capital Performance Fund ............................................... 5401’’.

21 TITLE V—MISCELLANEOUS 

22 SEC. 501. PROHIBITION ON USE OF QUOTAS. 

23 (a) IN GENERAL.—After the date of enactment of this 

24 Act, the Office of Management and Budget may not estab25 lish, apply, or enforce any numerical goal, target, or quota 
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1 for subjecting the employees of a department or agency of 

2 the Government to public-private competitions or con3 verting such employees or the work performed by such em4 ployees to contractor performance under Office of Manage5 ment and Budget Circular A-76 or any other administra6 tive regulation, directive, or policy, unless the goal, target, 

7 or quota is based on considered research and sound analysis 

8 of past activities and is consistent with the stated mission 

9 of the department or agency. 

10 (b) LIMITATIONS.—Subsection (a) shall not—

11 (1) otherwise affect the implementation or en12 forcement of the Government Performance and Results 

13 Act of 1993 (107 Stat. 285); or 

14 (2) prevent any agency of the Executive branch 

15 from subjecting work performed by Federal employees 

16 or private contractors to public-private competition 

17 or conversions.

Union Calendar No. 131

108TH CONGRESS 

1ST SESSION H. R. 1836

[Report No. 108–116, Part I] 

A BILL

To make changes to certain areas of the Federal 

civil service in order to improve the flexibility and competitiveness of Federal human resources management. 

JULY 25, 2003

Committees on Armed Services, Science, and Ways and 

Means discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be printed