I 

108TH CONGRESS 

1ST SESSION H. R. 1836

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 

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

2 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. 

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. 

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. 

Sec. 312. Effective date. 

TITLE IV—HUMAN CAPITAL PERFORMANCE FUND 

Sec. 401. Human Capital Performance Fund.

3 TITLE I—DEPARTMENT OF DE4 FENSE NATIONAL SECURITY 

5 PERSONNEL SYSTEM 

6 SEC. 101. SHORT TITLE. 

7 This title may be cited as the ‘‘National Security Per8 sonnel System Act’’. 
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1 SEC. 102. DEPARTMENT OF DEFENSE NATIONAL SECURITY 

2 PERSONNEL SYSTEM. 

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

4 5, United States Code, is amended by adding at the end 

5 the following new chapter: 

6 ‘‘CHAPTER 99—DEPARTMENT OF DEFENSE 

7 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.

8 ‘‘§ 9901. Definitions 

9 ‘‘For purposes of this chapter—

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

11 the Office of Personnel Management; and 

12 ‘‘(2) the term ‘Secretary’ means the Secretary 

13 of Defense. 

14 ‘‘§ 9902. Establishment of human resources manage15 ment system 

16 ‘‘(a) IN GENERAL.—(1) Notwithstanding any other 

17 provision of this part or of part II of this title, the Sec18 retary may, in regulations prescribed jointly with the Di19 rector, establish, and from time to time adjust, a human 

20 resources management system for some or all of the orga21 nizational or functional units of the Department of De-
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1 fense. If the Secretary certifies that issuance or adjust2 ment of a regulation, or the inclusion, exclusion, or modi3 fication of a particular provision therein, is essential to 

4 the national security, the Secretary may, subject to the 

5 direction of the President, waive the requirement in the 

6 preceding sentence that the regulation or adjustment be 

7 issued jointly with the Director. 

8 ‘‘(2) Any regulations established pursuant to this 

9 chapter shall be established as internal rules of depart10 mental procedure, consistent with section 553 of this title. 

11 ‘‘(b) SYSTEM REQUIREMENTS.—Any system estab12 lished under subsection (a) shall—

13 ‘‘(1) be flexible; 

14 ‘‘(2) be contemporary; 

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

16 ‘‘(A) the public employment principles of 

17 merit and fitness set forth in section 2301, in18 cluding the principles of hiring based on merit, 

19 fair treatment without regard to political affili20 ation or other nonmerit considerations, equal 

21 pay for equal work, and protection of employees 

22 against reprisal for whistleblowing; 

23 ‘‘(B) any provision of section 2302, relat24 ing to prohibited personnel practices; 
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1 ‘‘(C)(i) any provision of law referred to in 

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

3 ‘‘(ii) any provision of law implementing 

4 any provision of law referred to in section 

5 2302(b)(1), (8), and (9) by—

6 ‘‘(I) providing for equal employment 

7 opportunity through affirmative action; or 

8 ‘‘(II) providing any right or remedy 

9 available to any employee or applicant for 

10 employment in the public service; 

11 ‘‘(D) any other provision of this part (as 

12 described in subsection (c)); or 

13 ‘‘(E) any rule or regulation prescribed 

14 under any provision of law referred to in this 

15 paragraph; 

16 ‘‘(4) ensure that employees may organize, bar17 gain collectively as provided for in this chapter, and 

18 participate through labor organizations of their own 

19 choosing in decisions which affect them, subject to 

20 the provisions of this chapter and any exclusion from 

21 coverage or limitation on negotiability established 

22 pursuant to law; and 

23 ‘‘(5) not be limited by any specific law or au24 thority under this title that is waivable under this 

25 chapter or by any provision of this chapter or any 
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1 rule or regulation prescribed under this title that is 

2 waivable under this chapter, except as specifically 

3 provided for in this section. 

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

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

6 are (to the extent not otherwise specified in this title)—

7 ‘‘(1) subparts A, E, G, and H of this part; 

8 ‘‘(2) chapters 34, 45, 47, 57, 72, 73, and 79; 

9 and 

10 ‘‘(3) sections 3131, 3132(a), 3305(b), 3309, 

11 3310, 3311, 3312, 3313, 3314, 3315, 3316, 

12 3317(b), 3318, 3320, 3351, 3352, 3363, 3501, 

13 3502(b), and 3504. 

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

15 in this section shall constitute authority to modify the pay 

16 of any employee who serves in an Executive Schedule posi17 tion under subchapter II of chapter 53 of this title. 

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

19 total amount in a calendar year of allowances, differen20 tials, bonuses, awards, or other similar cash payments 

21 paid under this title to any employee who is paid under 

22 section 5376 or 5383 of this title or under title 10 or 

23 under other comparable pay authority established for pay24 ment of Department of Defense senior executive or equiva25 lent employees may not exceed the total annual compensa-
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1 tion payable to the Vice President under section 104 of 

2 title 3. 

3 ‘‘(e) PROVISIONS TO ENSURE COLLABORATION WITH

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

5 that the authority of this section is exercised in collabora6 tion with, and in a manner that ensures the participation 

7 of, employee representatives in the planning, development, 

8 and implementation of any human resources management 

9 system or adjustments to such system under this section, 

10 the Secretary and the Director shall provide for the fol11 lowing: 

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

13 respect to any proposed system or adjustment—

14 ‘‘(i) provide to the employee representa15 tives representing any employees who might be 

16 affected a written description of the proposed 

17 system or adjustment (including the reasons 

18 why it is considered necessary); 

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

20 calendar days (unless extraordinary cir21 cumstances require earlier action) to review and 

22 make recommendations with respect to the pro23 posal; and 

24 ‘‘(iii) give any recommendations received 

25 from such representatives under clause (ii) full 
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1 and fair consideration in deciding whether or 

2 how to proceed with the proposal. 

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

4 any, from such employee representatives with re5 spect to a proposal described in subparagraph (A), 

6 the Secretary and the Director shall accept such 

7 modifications to the proposal in response to the rec8 ommendations as they determine advisable and shall, 

9 with respect to any parts of the proposal as to which 

10 they have not accepted the recommendations—

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

12 proposal, together with the recommendations of 

13 the employee representatives; 

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

15 calendar days with the employee representa16 tives, in order to attempt to reach agreement on 

17 whether or how to proceed with those parts of 

18 the proposal; and 

19 ‘‘(iii) at the Secretary’s option, or if re20 quested by a majority of the employee rep21 resentatives participating, use the services of 

22 the Federal Mediation and Conciliation Service 

23 during such meet and confer period to facilitate 

24 the process of attempting to reach agreement. 
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1 ‘‘(C)(i) Any part of the proposal as to which the 

2 representatives do not make a recommendation, or 

3 as to which the recommendations are accepted by 

4 the Secretary and the Director, may be implemented 

5 immediately. 

6 ‘‘(ii) With respect to any parts of the proposal 

7 as to which recommendations have been made but 

8 not accepted by the Secretary and the Director, at 

9 any time after 30 calendar days have elapsed since 

10 the initiation of the congressional notification, con11 sultation, and mediation procedures set forth in sub12 paragraph (B), if the Secretary determines, in the 

13 Secretary’s sole and unreviewable discretion, that 

14 further consultation and mediation is unlikely to 

15 produce agreement, the Secretary may implement 

16 any or all of such parts, including any modifications 

17 made in response to the recommendations as the 

18 Secretary determines advisable. 

19 ‘‘(iii) The Secretary shall notify Congress 

20 promptly of the implementation of any part of the 

21 proposal and shall furnish with such notice an expla22 nation of the proposal, any changes made to the pro23 posal as a result of recommendations from the em24 ployee representatives, and of the reasons why im-
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1 plementation is appropriate under this subpara2 graph. 

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

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

5 shall—

6 ‘‘(i) develop a method for the employee 

7 representatives to participate in any further 

8 planning or development which might become 

9 necessary; and 

10 ‘‘(ii) give the employee representatives ade11 quate access to information to make that par12 ticipation productive. 

13 ‘‘(2) The Secretary may, at the Secretary’s discre14 tion, engage in any and all collaboration activities de15 scribed in this subsection at an organizational level above 

16 the level of exclusive recognition. 

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

18 a unit with respect to which a labor organization is ac19 corded exclusive recognition, the Secretary and the Direc20 tor may develop procedures for representation by any ap21 propriate organization which represents a substantial per22 centage of those employees or, if none, in such other man23 ner as may be appropriate, consistent with the purposes 

24 of this subsection. 
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1 ‘‘(4) Any procedures necessary to carry out this sub2 section shall be established as internal rules of department 

3 procedure which shall not be subject to review. 

4 ‘‘(f) PROVISIONS REGARDING NATIONAL LEVEL

5 BARGAINING.—(1) Any human resources management 

6 system implemented or modified under this chapter may 

7 include employees of the Department of Defense from any 

8 bargaining unit with respect to which a labor organization 

9 has been accorded exclusive recognition under chapter 71 

10 of this title. 

11 ‘‘(2) For any bargaining unit so included under para12 graph (1), the Secretary at his sole and exclusive discre13 tion may bargain at an organizational level above the level 

14 of exclusive recognition. Any such bargaining shall—

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

16 units at the level of recognition and their exclusive 

17 representatives, and the Department of Defense and 

18 its subcomponents, without regard to levels of rec19 ognition; 

20 ‘‘(B) supersede all other collective bargaining 

21 agreements, including collective bargaining agree22 ments negotiated with an exclusive representative at 

23 the level of recognition, except as otherwise deter24 mined by the Secretary; 
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1 ‘‘(C) not be subject to further negotiations for 

2 any purpose, including bargaining at the level of rec3 ognition, except as provided for by the Secretary; 

4 and 

5 ‘‘(D) except as otherwise specified in this chap6 ter, not be subject to review or to statutory third7 party dispute resolution procedures outside the De8 partment of Defense. 

9 ‘‘(3) The National Guard Bureau and the Army and 

10 Air Force National Guard are excluded from coverage 

11 under this subsection. 

12 ‘‘(4) Any bargaining completed pursuant to this sub13 section with a labor organization not otherwise having na14 tional consultation rights with the Department of Defense 

15 or its subcomponents shall not create any obligation on 

16 the Department of Defense or its subcomponents to confer 

17 national consultation rights on such a labor organization. 

18 ‘‘(g) PROVISIONS RELATING TO APPELLATE PROCE19 DURES.—(1) It is the sense of Congress that—

20 ‘‘(A) employees of the Department of Defense 

21 are entitled to fair treatment in any appeals that 

22 they bring in decisions relating to their employment; 

23 and 

24 ‘‘(B) in prescribing regulations for any such ap25 peals procedures, the Secretary—
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1 ‘‘(i) should ensure that employees of the 

2 Department of Defense are afforded the protec3 tions of due process; and 

4 ‘‘(ii) toward that end, should be required 

5 to consult with the Merit Systems Protection 

6 Board before issuing any such regulations. 

7 ‘‘(2) Any regulations under this section that relate 

8 to any matters within the purview of chapter 77 of this 

9 title shall—

10 ‘‘(A) be issued only after consultation with the 

11 Merit Systems Protection Board; 

12 ‘‘(B) ensure the availability of procedures 

13 that—

14 ‘‘(i) are consistent with requirements of 

15 due process; and 

16 ‘‘(ii) provide, to the maximum extent prac17 ticable, for the expeditious handling of any mat18 ters involving the Department of Defense; and 

19 ‘‘(C) modify procedures under chapter 77 only 

20 insofar as such modifications are designed to further 

21 the fair, efficient, and expeditious resolution of mat22 ters involving the employees of the Department of 

23 Defense. 

24 ‘‘(h) PROVISIONS RELATED TO SEPARATION AND RE25 TIREMENT INCENTIVES.—(1) The Secretary may establish 
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1 a program within the Department of Defense under which 

2 employees may be eligible for early retirement, offered sep3 aration incentive pay to separate from service voluntarily, 

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

5 of personnel employed by the Department of Defense or 

6 to restructure the workforce to meet mission objectives 

7 without reducing the overall number of personnel. This au8 thority is in addition to, and notwithstanding, any other 

9 authorities established by law or regulation for such pro10 grams. 

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

12 means an employee of the Department of Defense, serving 

13 under an appointment without time limitation, except that 

14 such term does not include—

15 ‘‘(A) a reemployed annuitant under subchapter 

16 III of chapter 83 or chapter 84 of this title, or an17 other retirement system for employees of the Fed18 eral Government; 

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

20 basis of which such employee is or would be eligible 

21 for disability retirement under any of the retirement 

22 systems referred to in paragraph (1); or 

23 ‘‘(C) for purposes of eligibility for separation 

24 incentives under this section, an employee who is in 
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1 receipt 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 

6 under this section, apply and be retired from the Depart7 ment of Defense and receive benefits in accordance with 

8 chapter 83 or 84 if the employee has been employed con9 tinuously within the Department of Defense for more than 

10 30 days before the date on which the determination to con11 duct a reduction or restructuring within 1 or more Depart12 ment of Defense Component is approved pursuant to the 

13 program established 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 

6 work under a personal services contract as described in 

7 paragraph (6). 

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

9 under such program may not be reemployed by the De10 partment of Defense for a 12-month period beginning on 

11 the effective date of the employee’s separation, unless this 

12 prohibition is waived by the Secretary on a case-by-case 

13 basis. 

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

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

16 after the date of the enactment of the Federal Workforce 

17 Restructuring Act of 1994 (Public Law 103–236; 108 

18 Stat. 111) and accepts employment with the Government 

19 of the United States, or who commences work through a 

20 personal services contract with the United States within 

21 5 years after the date of the separation on which payment 

22 of the separation pay is based, shall be required to repay 

23 the entire amount of the separation pay to the Depart24 ment of Defense. If the employment is with an Executive 

25 agency (as defined by section 105 of this title) other than 
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1 the Department of Defense, the Director may, at the re2 quest of the head of that agency, waive the repayment if 

3 the individual involved possesses unique abilities and is the 

4 only qualified applicant available for the position. If the 

5 employment is within the Department of Defense, the Sec6 retary may waive the repayment if the individual involved 

7 is the only qualified applicant available for the position. 

8 If the employment is with an entity in the legislative 

9 branch, the head of the entity or the appointing official 

10 may waive the repayment if the individual involved pos11 sesses unique abilities and is the only qualified applicant 

12 available for the position. If the employment is with the 

13 judicial branch, the Director of the Administrative Office 

14 of the United States Courts may waive the repayment if 

15 the individual involved possesses unique abilities and is the 

16 only qualified applicant available for the position. 

17 ‘‘(6) Under this program, early retirement and sepa18 ration pay may be offered only pursuant to regulations 

19 established by the Secretary, subject to such limitations 

20 or conditions as the Secretary may require. 

21 ‘‘(i) PROVISIONS RELATING TO REEMPLOYMENT.—

22 If annuitant receiving an annuity from the Civil Service 

23 Retirement and Disability Fund becomes employed in a 

24 position within the Department of Defense, his annuity 
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1 shall continue. An annuitant so reemployed shall not be 

2 considered an employee for purposes of chapter 83 or 84. 

3 ‘‘§ 9903. Attracting highly qualified experts 

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

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

6 order to attract highly qualified experts in needed occupa7 tions, as determined by the Secretary. 

8 ‘‘(b) AUTHORITY.—Under the program, the Sec9 retary may—

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

11 service and uniformed services (as such terms are 

12 defined in section 2101 of this title) to positions in 

13 the Department of Defense without regard to any 

14 provision of this title governing the appointment of 

15 employees to positions in the Department of De16 fense; 

17 ‘‘(2) prescribe the rates of basic pay for posi18 tions to which employees are appointed under para19 graph (1) at rates not in excess of the maximum 

20 rate of basic pay authorized for senior-level positions 

21 under section 5376 of this title, as increased by lo22 cality-based comparability payments under section 

23 5304 of this title, notwithstanding any provision of 

24 this title governing the rates of pay or classification 

25 of employees in the executive branch; and 
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1 ‘‘(3) pay any employee appointed under para2 graph (1) payments in addition to basic pay within 

3 the limits applicable to the employee under sub4 section (d). 

5 ‘‘(c) LIMITATION ON TERM OF APPOINTMENT.—(1) 

6 Except as provided in paragraph (2), the service of an em7 ployee under an appointment made pursuant to this sec8 tion may not exceed 5 years. 

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

10 employee, extend the period to which service is limited 

11 under paragraph (1) by up to 1 additional year if the Sec12 retary determines that such action is necessary to promote 

13 the Department of Defense’s national security missions. 

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

15 The total amount of the additional payments paid to an 

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

17 not exceed the lesser of the following amounts: 

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

19 adjusted annually thereafter by the Secretary, with 

20 a percentage increase equal to one-half of one per21 centage point less than the percentage by which the 

22 Employment Cost Index, published quarterly by the 

23 Bureau of Labor Statistics, for the base quarter of 

24 the year before the preceding calendar year exceeds 
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1 the Employment Cost Index for the base quarter of 

2 the second year before the preceding calendar year. 

3 ‘‘(B) The amount equal to 50 percent of the 

4 employee’s annual rate of basic pay. 

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

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

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

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

9 incentive for service except for payments authorized under 

10 this section. 

11 ‘‘(3) Notwithstanding any other provision of this sub12 section or of section 5307, no additional payments may 

13 be paid to an employee under this section in any calendar 

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

15 compensation will exceed the maximum amount of total 

16 annual compensation payable at the salary set in accord17 ance with section 104 of title 3. 

18 ‘‘(e) SAVINGS PROVISIONS.—In the event that the 

19 Secretary terminates this program, in the case of an em20 ployee who, on the day before the termination of the pro21 gram, is serving in a position pursuant to an appointment 

22 under this section—

23 ‘‘(1) the termination of the program does not 

24 terminate the employee’s employment in that posi25 tion before the expiration of the lesser of—
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1 ‘‘(A) the period for which the employee 

2 was appointed; or 

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

4 service is limited under subsection (c), including 

5 any extension made under this section before 

6 the termination of the program; and 

7 ‘‘(2) the rate of basic pay prescribed for the po8 sition under this section may not be reduced as long 

9 as the employee continues to serve in the position 

10 without a break in service. 

11 ‘‘§ 9904. Employment of older Americans 

12 ‘‘(a) IN GENERAL.—Notwithstanding any other pro13 vision of law, the Secretary may appoint older Americans 

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

15 exceed 2 years, provided that—

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

17 ‘‘(A) the displacement of individuals cur18 rently employed by the Department of Defense 

19 (including partial displacement through reduc20 tion of nonovertime hours, wages, or employ21 ment benefits); or 

22 ‘‘(B) the employment of any individual 

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

24 status from the same or substantially equivalent 

25 job within the Department of Defense; and 
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1 ‘‘(2) the individual to be appointed is otherwise 

2 qualified for the position, as determined by the Sec3 retary. 

4 ‘‘(b) EFFECT ON EXISTING RETIREMENT BENE5 FITS.—Notwithstanding any other provision of law, an in6 dividual appointed pursuant to subsection (a) who other7 wise is receiving an annuity, pension, social security pay8 ment, retired pay, or other similar payment shall not have 

9 the amount of said annuity, pension, social security, or 

10 other similar payment reduced as a result of such employ11 ment. 

12 ‘‘(c) EXTENSION OF APPOINTMENT.—Notwith13 standing subsection (a), the Secretary may extend an ap14 pointment made pursuant to this section for up to an addi15 tional 2 years if the individual employee possesses unique 

16 knowledge or abilities that are not otherwise available to 

17 the Department of Defense. 

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

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

20 States who is at least 55 years of age. 

21 ‘‘§ 9905. Special pay and benefits for certain employ22 ees outside the United States 

23 ‘‘The Secretary may provide to certain civilian em24 ployees of the Department of Defense assigned to activi25 ties outside the United States as determined by the Sec-
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1 retary to be in support of Department of Defense activities 

2 abroad hazardous to life or health or so specialized be3 cause of security requirements as to be clearly distinguish4 able from normal government employment—

5 ‘‘(1) allowances and benefits—

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

7 Secretary of State to members of the Foreign 

8 Service under chapter 9 of title I of the Foreign 

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

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

11 law; or 

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

13 Director of Central Intelligence to personnel of 

14 the Central Intelligence Agency; and 

15 ‘‘(2) special retirement accrual benefits and dis16 ability in the same manner provided for by the Cen17 tral Intelligence Agency Retirement Act (50 U.S.C. 

18 2001 et seq.) and in section 18 of the Central Intel19 ligence Agency Act of 1949 (50 U.S.C. 403r).’’. 

20 (2) The table of chapters for part III of such title 

21 is amended by adding at the end of subpart I the following 

22 new item:

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

23 (b) IMPACT ON DEPARTMENT OF DEFENSE CIVILIAN

24 PERSONNEL.—(1) Any exercise of authority under chap25 ter 99 of such title (as added by subsection (a)), including 
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1 under any system established under such chapter, shall 

2 be in conformance with the requirements of this sub3 section. 

4 (2) No other provision of this Act or of any amend5 ment made by this Act may be construed or applied in 

6 a manner so as to limit, supersede, or otherwise affect the 

7 provisions of this section, except to the extent that it does 

8 so by specific reference to this section. 

9 (c) CONFORMING AMENDMENTS.—(1) Section 6 of 

10 the Civil Service Miscellaneous Amendments Act of 1983 

11 (Public Law 98–224; 98 Stat. 49), as amended, is re12 pealed. 

13 (2) Section 342 of the National Defense Authoriza14 tion Act for Fiscal Year 1995 (Public Law 103–337; 108 

15 Stat. 2721), as amended, is repealed. 

16 (3) Section 1101 of the Strom Thurmond National 

17 Defense Authorization Act for Fiscal Year 1999 (Public 

18 Law 105–261; 112 Stat. 2139), as amended, is repealed. 

19 (4) Section 4308 of the National Defense Authoriza20 tion Act for Fiscal Year 1996 (Public Law 104–106; 110 

21 Stat. 669), as amended, is repealed. 
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1 TITLE II—DEPARTMENT OF 

2 DEFENSE CIVILIAN PERSONNEL 

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

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

5 amended—

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

7 and one-half’’; and 

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

9 of the employee’’ after ‘‘law)’’ the second place it ap10 pears.

11 SEC. 202. CIVIL SERVICE RETIREMENT SYSTEM COMPUTA12 TION FOR PART-TIME SERVICE. 

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

14 amended by adding at the end the following new para15 graphs: 

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

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

18 apply with respect to pay for service performed be19 fore, on, or after April 7, 1986; and 

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

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

22 of any annuity which is attributable to service 

23 performed on or after April 7, 1986; and 
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1 ‘‘(ii) shall not apply with respect to that 

2 portion of any annuity which is attributable to 

3 service performed before April 7, 1986. 

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

5 any annuity entitlement to which is based on a separation 

6 from service occurring on or after the date of the enact7 ment of this paragraph.’’. 

8 SEC. 203. MILITARY LEAVE FOR MOBILIZED FEDERAL CI9 VILIAN EMPLOYEES. 

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

11 title 5, United States Code, is amended—

12 (1) in paragraph (2)—

13 (A) by redesignating subparagraphs (A) 

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

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

16 inserting ‘‘or’’; and 

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

18 (2) by inserting the following before the text be19 ginning with ‘‘is entitled’’: 

20 ‘‘(B) performs full-time military service as a re21 sult of a call or order to active duty in support of 

22 a contingency operation as defined in section 

23 101(a)(13) of title 10;’’. 
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1 (b) EFFECTIVE DATE.—The amendments made by 

2 subsection (a) shall apply to military service performed on 

3 or after the date of the enactment of this Act.

4 SEC. 204. COMMON OCCUPATIONAL AND HEALTH STAND5 ARDS FOR DIFFERENTIAL PAYMENTS AS A 

6 CONSEQUENCE OF EXPOSURE TO ASBESTOS. 

7 (a) PREVAILING RATE SYSTEMS.—Section 

8 5343(c)(4) of title 5, United States Code, is amended by 

9 inserting before the semicolon at the end the following: 

10 ‘‘, and for any hardship or hazard related to asbestos, such 

11 differentials shall be determined by applying occupational 

12 safety and health standards consistent with the permis13 sible exposure limit promulgated by the Secretary of 

14 Labor under the Occupational Safety and Health Act of 

15 1970’’. 

16 (b) GENERAL SCHEDULE PAY RATES.—Section 

17 5545(d) of such title is amended by inserting before the 

18 period at the end of the first sentence the following: ‘‘, 

19 and for any hardship or hazard related to asbestos, such 

20 differentials shall be determined by applying occupational 

21 safety and health standards consistent with the permis22 sible exposure limit promulgated by the Secretary of 

23 Labor under the Occupational Safety and Health Act of 

24 1970’’. 
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1 (c) APPLICABILITY.—Subject to any vested constitu2 tional property rights, any administrative or judicial deter3 mination after the date of enactment of this Act con4 cerning backpay for a differential established under sec5 tions 5343(c)(4) or 5545(d) of such title shall be based 

6 on occupational safety and health standards described in 

7 the amendments made by subsections (a) and (b). 

8 SEC. 205. INCREASE IN ANNUAL STUDENT LOAN REPAY9 MENT AUTHORITY. 

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

11 is amended by striking ‘‘$6,000’’ and inserting 

12 ‘‘$10,000’’. 

13 SEC. 206. AUTHORIZATION FOR CABINET SECRETARIES, 

14 SECRETARIES OF MILITARY DEPARTMENTS, 

15 AND HEADS OF EXECUTIVE AGENCIES TO BE 

16 PAID ON A BIWEEKLY BASIS. 

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

18 States Code, is amended—

19 (1) by redesignating subsection (c) as sub20 section (d); 

21 (2) by striking the last sentence of both sub22 section (a) and subsection (b); and 

23 (3) by inserting after subsection (b) the fol24 lowing: 

25 ‘‘(c) For the purposes of this section: 
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1 ‘‘(1) The term ‘employee’ means—

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

3 agency; 

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

5 the Architect of the Capitol, the Botanic Gar6 den, and the Library of Congress, for whom a 

7 basic administrative workweek is established 

8 under section 6101(a)(5) of this title; and 

9 ‘‘(C) an individual employed by the govern10 ment of the District of Columbia. 

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

12 ‘‘(A) an employee on the Isthmus of Pan13 ama in the service of the Panama Canal Com14 mission; or 

15 ‘‘(B) an employee or individual excluded 

16 from the definition of employee in section 

17 5541(2) of this title other than an employee or 

18 individual excluded by clauses (ii), (iii), and 

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

20 ‘‘(3) Notwithstanding paragraph (2), an indi21 vidual who otherwise would be excluded from the 

22 definition of employee shall be deemed to be an em23 ployee for purposes of this section if the individual’s 

24 employing agency so elects, under guidelines in regu-
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1 lations promulgated by the Office of Personnel Man2 agement under subsection (d)(2).’’. 

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

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

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

6 (2) by adding at the end the following new 

7 paragraph: 

8 ‘‘(2) The Office of Personnel Management shall pro9 vide guidelines by regulation for exemptions to be made 

10 by the heads of agencies under subsection (c)(3). Such 

11 guidelines shall provide for such exemptions only under 

12 exceptional circumstances.’’. 

13 SEC. 207. ADDITIONAL CLASSES OF INDIVIDUALS ELIGIBLE 

14 TO PARTICIPATE IN THE FEDERAL LONG15 TERM CARE INSURANCE PROGRAM. 

16 (a) CERTAIN EMPLOYEES OF THE DISTRICT OF CO17 LUMBIA GOVERNMENT.—Section 9001(1) of title 5, 

18 United States Code, is amended by striking ‘‘2105(c),’’ 

19 and all that follows and inserting ‘‘2105(c).’’. 

20 (b) FORMER FEDERAL EMPLOYEES WHO WOULD BE

21 ELIGIBLE TO BEGIN RECEIVING AN ANNUITY UPON AT22 TAINING THE REQUISITE MINIMUM AGE.—Section 

23 9001(2) of title 5, United States Code, is amended—

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

25 the end; 
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1 (2) in subparagraph (B), by striking the period 

2 and inserting ‘‘; and’’; and 

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

4 ‘‘(C) any former employee who, on the 

5 basis of his or her service, would meet all re6 quirements for being considered an ‘annuitant’ 

7 within the meaning of subchapter III of chapter 

8 83, chapter 84, or any other retirement system 

9 for employees of the Government, but for the 

10 fact that such former employee has not attained 

11 the minimum age for title to annuity.’’. 

12 (c) RESERVISTS TRANSFERRED TO THE RETIRED

13 RESERVE WHO ARE UNDER AGE 60.—Section 9001(4) 

14 of title 5, United States Code, is amended by striking ‘‘in15 cluding’’ and all that follows through ‘‘who has’’ and in16 serting ‘‘and a member who has been transferred to the 

17 Retired Reserve and who would be entitled to retired pay 

18 under chapter 1223 of title 10 but for not having’’. 
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1 TITLE III—PROVISIONS RELAT2 ING TO THE SECURITIES AND 

3 EXCHANGE COMMISSION AND 

4 THE NATIONAL AERO5 NAUTICS AND SPACE ADMIN6 ISTRATION 

7 Subtitle A—Securities and 

8 Exchange Commission 

9 SEC. 301. SECURITIES AND EXCHANGE COMMISSION. 

10 Subchapter I of chapter 31 of title 5, United States 

11 Code, is amended by adding at the end the following: 

12 ‘‘§ 3114. APPOINTMENT OF ACCOUNTANTS, 

13 ECONOMISTS, AND EXAMINERS BY 

14 THE SECURITIES AND EXCHANGE 

15 COMMISSION. 

16 ‘‘(a) APPLICABILITY.—This section applies with re17 spect to any position of accountant, economist, and securi18 ties compliance examiner at the Commission that is in the 

19 competitive service. 

20 ‘‘(b) APPOINTMENT AUTHORITY.—

21 ‘‘(1) IN GENERAL.—The Commission may ap22 point candidates to any position described in sub23 section (a)—
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1 ‘‘(A) in accordance with the statutes, rules, 

2 and regulations governing appointments in the 

3 excepted service; and 

4 ‘‘(B) notwithstanding any statutes, rules, 

5 and regulations governing appointments in the 

6 competitive service. 

7 ‘‘(2) RULE OF CONSTRUCTION.—The appoint8 ment of a candidate to a position under authority of 

9 this subsection shall not be considered to cause such 

10 position to be converted from the competitive service 

11 to the excepted service. 

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

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

14 the end of fiscal year 2005 (for fiscal years 2004 and 

15 2005), the Commission shall submit a report with respect 

16 to its exercise of the authority granted by subsection (b) 

17 during such fiscal years to the Committee on Government 

18 Reform and the Committee on Financial Services of the 

19 House of Representatives and the Committee on Govern20 mental Affairs and the Committee on Banking, Housing, 

21 and Urban Affairs of the Senate. Such reports shall de22 scribe the changes in the hiring process authorized by such 

23 subsection, including relevant information related to—

24 ‘‘(1) the quality of candidates; 
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1 ‘‘(2) the procedures used by the Commission to 

2 select candidates through the streamlined hiring 

3 process; 

4 ‘‘(3) the numbers, types, and grades of employ5 ees hired under the authority; 

6 ‘‘(4) any benefits or shortcomings associated 

7 with the use of the authority; 

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

9 on the hiring of veterans and other demographic 

10 groups; and 

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

12 the administration of the streamlined hiring system. 

13 ‘‘(c) COMMISSION DEFINED.—For purposes of this 

14 section, the term ‘Commission’ means the Security and 

15 Exchange Commission.’’. 

16 Subtitle B—National Aeronautics 

17 and Space Administration 

18 SEC. 311. WORKFORCE AUTHORITIES AND PERSONNEL 

19 PROVISIONS. 

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

21 United States Code, is amended by inserting after chapter 

22 97, as added by section 841(a)(2) of the Homeland Secu23 rity Act of 2002 (Public Law 107–296; 116 Stat. 2229), 

24 the following:
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1 ‘‘CHAPTER 98—NATIONAL AERONAUTICS 

2 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. 

‘‘SUBCHAPTER II—PERSONNEL PROVISIONS 

‘‘9831. Definitions. 

‘‘9832. Administration and private sector exchange assignments. 

‘‘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.

3 ‘‘SUBCHAPTER I—WORKFORCE AUTHORITIES 

4 ‘‘§ 9801. Definitions 

5 ‘‘For purposes of this subchapter—

6 ‘‘(1) the term ‘Administration’ means the Na7 tional Aeronautics and Space Administration; 

8 ‘‘(2) the term ‘Administrator’ means the Ad9 ministrator of the National Aeronautics and Space 

10 Administration; 

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

12 and important requirement of the Administration’s 

13 mission that the Administration is unable to fulfill 

14 because the Administration lacks the appropriate 

15 employees because— 
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1 ‘‘(A) of the inability to fill positions; or 

2 ‘‘(B) employees do not possess the req3 uisite skills; 

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

5 employed in or under the Administration; and 

6 ‘‘(5) the term ‘workforce plan’ means the plan 

7 required under section 9802(a). 

8 ‘‘§ 9802. Planning, notification, and reporting require9 ments 

10 ‘‘(a) Before exercising any of the workforce authori11 ties under this subchapter, the Administrator shall submit 

12 a written plan to the Office of Personnel Management for 

13 approval. A plan under this subchapter may not be imple14 mented without the approval of the Office of Personnel 

15 Management. 

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

17 ‘‘(1) each critical need of the Administration 

18 and the criteria used in the identification of that 

19 need; 

20 ‘‘(2)(A) the functions, approximate number, 

21 and classes or other categories of positions or em22 ployees that—

23 ‘‘(i) address critical needs; and 
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1 ‘‘(ii) would be eligible for each authority 

2 proposed to be exercised under section 9803; 

3 and 

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

5 respect to the eligible positions or employees involved 

6 would address each critical need identified under 

7 paragraph (1); 

8 ‘‘(3)(A) any critical need identified under para9 graph (1) which would not be addressed by the au10 thorities made available under section 9803; and 

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

12 so addressed; 

13 ‘‘(4) the specific criteria to be used in deter14 mining which individuals may receive the benefits 

15 described under sections 9804 and 9805 (including 

16 the criteria for granting bonuses in the absence of 

17 a critical need), and how the level of those benefits 

18 will be determined; 

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

20 be applied to ensure that this subchapter is carried 

21 out in a manner consistent with merit system prin22 ciples; 

23 ‘‘(6) the means by which employees will be af24 forded the notification required under subsections 

25 (c) and (d)(1)(B); 
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1 ‘‘(7) the methods that will be used to determine 

2 if the authorities exercised under section 9803 have 

3 successfully addressed each critical need identified 

4 under paragraph (1); and 

5 ‘‘(8)(A) the recruitment methods used by the 

6 Administration before the enactment of this chapter 

7 to recruit highly qualified individuals; and 

8 ‘‘(B) the changes the Administration will imple9 ment after the enactment of this chapter in order to 

10 improve its recruitment of highly qualified individ11 uals, including how it intends to use—

12 ‘‘(i) nongovernmental recruitment or place13 ment agencies; and 

14 ‘‘(ii) Internet technologies. 

15 ‘‘(c) Not later than 60 days before first exercising 

16 any of the workforce authorities made available under this 

17 subchapter, the Administrator shall provide to all employ18 ees the workforce plan and any additional information 

19 which the Administrator considers appropriate. 

20 ‘‘(d)(1)(A) The Administrator may submit any modi21 fications to the workforce plan to the Office of Personnel 

22 Management. Modifications to the workforce plan may not 

23 be implemented without the approval of the Office of Per24 sonnel Management. 
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1 ‘‘(B) Not later than 60 days before implementing any 

2 such modifications, the Administrator shall provide an ap3 propriately modified plan to all employees of the Adminis4 tration. 

5 ‘‘(2) Any reference in this subchapter or any other 

6 provision of law to the workforce plan shall be considered 

7 to include any modification made in accordance with this 

8 subsection. 

9 ‘‘(e) None of the workforce authorities made available 

10 under section 9803 may be exercised in a manner incon11 sistent with the workforce plan. 

12 ‘‘(f) Whenever the Administration submits its per13 formance plan under section 1115 of title 31 to the Office 

14 of Management and Budget for any year, the Administra15 tion shall at the same time submit a copy of such plan 

16 to—

17 ‘‘(1) the Committee on Governmental Affairs 

18 and the Committee on Appropriations of the Senate; 

19 and 

20 ‘‘(2) the Committee on Government Reform and 

21 the Committee on Appropriations of the House of 

22 Representatives. 

23 ‘‘§ 9803. Workforce authorities 

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

25 are the following: 
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1 ‘‘(1) The authority to pay recruitment, redesig2 nation, and relocation bonuses under section 9804. 

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

4 under section 9805. 

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

6 and to take related personnel actions under section 

7 9806. 

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

9 critical positions under section 9807. 

10 ‘‘(5) The authority to extend intergovernmental 

11 personnel act assignments under section 9808. 

12 ‘‘(b) No authority under this subchapter may be exer13 cised with respect to any officer who is appointed by the 

14 President, by and with the advice and consent of the Sen15 ate. 

16 ‘‘(c) Unless specifically stated otherwise, all authori17 ties provided under this subchapter are subject to section 

18 5307.

19 ‘‘§ 9804. Recruitment, redesignation, and relocation 

20 bonuses 

21 ‘‘(a) Notwithstanding section 5753, the Adminis22 trator may pay a bonus to an individual, in accordance 

23 with the workforce plan and subject to the limitations in 

24 this section, if— 
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1 ‘‘(1) the Administrator determines that the Ad2 ministration would be likely, in the absence of a 

3 bonus, to encounter difficulty in filling a position; 

4 and 

5 ‘‘(2) the individual—

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

7 the Federal Government; 

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

9 Government and is newly appointed to another 

10 position in the same geographic area; or 

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

12 Government and is required to relocate to a dif13 ferent geographic area to accept a position with 

14 the Administration. 

15 ‘‘(b) If the position is described as addressing a crit16 ical need in the workforce plan under section 

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

18 ‘‘(1) 50 percent of the employee’s annual rate 

19 of basic pay (including comparability payments 

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

21 of the service period multiplied by the service period 

22 specified under subsection (d)(1)(B)(i); or 

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

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

2 of the service period. 

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

4 critical need in the workforce plan under section 

5 9802(b)(2)(A), the amount of a bonus may not exceed—

6 ‘‘(1) 25 percent of the employee’s annual rate 

7 of basic pay (including comparability payments 

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

9 of the service period multiplied by the service period 

10 specified under subsection (d)(1)(B)(i); or 

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

12 of basic pay (including comparability payments 

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

14 of the service period. 

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

16 shall be contingent upon the individual entering into a 

17 service agreement with the Administration. 

18 ‘‘(B) At a minimum, the service agreement shall in19 clude—

20 ‘‘(i) the required service period; 

21 ‘‘(ii) the method of payment, including a pay22 ment schedule, which may include a lump-sum pay23 ment, installment payments, or a combination there24 of; 
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1 ‘‘(iii) the amount of the bonus and the basis for 

2 calculating that amount; and 

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

4 may be terminated before the agreed-upon service 

5 period has been completed, and the effect of the ter6 mination. 

7 ‘‘(2) For purposes of determinations under sub8 sections (b)(1) and (c)(1), the employee’s service period 

9 shall be expressed as the number equal to the full years 

10 and twelfth parts thereof, rounding the fractional part of 

11 a month to the nearest twelfth part of a year. The service 

12 period may not be less than 6 months and may not exceed 

13 4 years. 

14 ‘‘(3) A bonus under this section may not be consid15 ered to be part of the basic pay of an employee. 

16 ‘‘(e) Before paying a bonus under this section, the 

17 Administration shall establish a plan for paying recruit18 ment, redesignation, and relocation bonuses, subject to ap19 proval by the Office of Personnel Management. 

20 ‘‘§ 9805. Retention bonuses 

21 ‘‘(a) Notwithstanding section 5754, the Adminis22 trator may pay a bonus to an employee, in accordance with 

23 the workforce plan and subject to the limitations in this 

24 section, if the Administrator determines that—
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1 ‘‘(1) the unusually high or unique qualifications 

2 of the employee or a special need of the Administra3 tion for the employee’s services makes it essential to 

4 retain the employee; and 

5 ‘‘(2) the employee would be likely to leave in 

6 the absence of a retention bonus. 

7 ‘‘(b) If the position is described as addressing a crit8 ical need in the workforce plan under section 

9 9802(b)(2)(A), the amount of a bonus may not exceed 50 

10 percent of the employee’s annual rate of basic pay (includ11 ing comparability payments under sections 5304 and 

12 5304a). 

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

14 critical need in the workforce plan under section 

15 9802(b)(2)(A), the amount of a bonus may not exceed 25 

16 percent of the employee’s annual rate of basic pay (includ17 ing comparability payments under sections 5304 and 

18 5304a). 

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

20 shall be contingent upon the employee entering into a serv21 ice agreement with the Administration. 

22 ‘‘(B) At a minimum, the service agreement shall in23 clude—

24 ‘‘(i) the required service period; 
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1 ‘‘(ii) the method of payment, including a pay2 ment schedule, which may include a lump-sum pay3 ment, installment payments, or a combination there4 of; 

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

6 calculating the amount; and 

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

8 may be terminated before the agreed-upon service 

9 period has been completed, and the effect of the ter10 mination. 

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

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

13 thereof, rounding the fractional part of a month to the 

14 nearest twelfth part of a year. The service period may not 

15 be less than 6 months and may not exceed 4 years. 

16 ‘‘(3) Notwithstanding paragraph (1), a service agree17 ment is not required if the Administration pays a bonus 

18 in biweekly installments and sets the installment payment 

19 at the full bonus percentage rate established for the em20 ployee, with no portion of the bonus deferred. In this case, 

21 the Administration shall inform the employee in writing 

22 of any decision to change the retention bonus payments. 

23 The employee shall continue to accrue entitlement to the 

24 retention bonus through the end of the pay period in which 

25 such written notice is provided. 
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1 ‘‘(e) A bonus under this section may not be consid2 ered to be part of the basic pay of an employee. 

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

4 under this section during a service period previously estab5 lished for that employee under section 5753 or under sec6 tion 9804. 

7 ‘‘§ 9806. Term appointments 

8 ‘‘(a) The Administrator may authorize term appoint9 ments within the Administration under subchapter I of 

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

11 more than 6 years. 

12 ‘‘(b) Notwithstanding chapter 33 or any other provi13 sion of law relating to the examination, certification, and 

14 appointment of individuals in the competitive service, the 

15 Administrator may convert an employee serving under a 

16 term appointment to a permanent appointment in the 

17 competitive service within the Administration without fur18 ther competition if—

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

20 competitive examination under subchapter I of chap21 ter 33 to the term position; 

22 ‘‘(2) the announcement for the term appoint23 ment from which the conversion is made stated that 

24 there was potential for subsequent conversion to a 

25 career-conditional or career appointment; 
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1 ‘‘(3) the employee has completed at least 2 

2 years of current continuous service under a term ap3 pointment in the competitive service; 

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

5 term appointment was at least fully successful or 

6 equivalent; and 

7 ‘‘(5) the position to which such employee is 

8 being converted under this section is in the same oc9 cupational series, is in the same geographic location, 

10 and provides no greater promotion potential than 

11 the term position for which the competitive examina12 tion was conducted. 

13 ‘‘(c) Notwithstanding chapter 33 or any other provi14 sion of law relating to the examination, certification, and 

15 appointment of individuals in the competitive service, the 

16 Administrator may convert an employee serving under a 

17 term appointment to a permanent appointment in the 

18 competitive service within the Administration through in19 ternal competitive promotion procedures if the conditions 

20 under paragraphs (1) through (4) of subsection (b) are 

21 met. 

22 ‘‘(d) An employee converted under this section be23 comes a career-conditional employee, unless the employee 

24 has otherwise completed the service requirements for ca25 reer tenure. 
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1 ‘‘(e) An employee converted to career or career-condi2 tional employment under this section acquires competitive 

3 status upon conversion. 

4 ‘‘§ 9807. Pay authority for critical positions 

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

6 ‘‘(1) a position to which chapter 51 applies, in7 cluding a position in the Senior Executive Service; 

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

9 under sections 5312 through 5317; 

10 ‘‘(3) a position established under section 3104; 

11 or 

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

13 5376(a)(1) applies. 

14 ‘‘(b) Authority under this section—

15 ‘‘(1) may be exercised only with respect to a po16 sition that— 

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

18 need in the workforce plan under section 

19 9802(b)(2)(A); and 

20 ‘‘(B) requires expertise of an extremely 

21 high level in a scientific, technical, professional, 

22 or administrative field; 

23 ‘‘(2) may be exercised only to the extent nec24 essary to recruit or retain an individual exceptionally 

25 well qualified for the position; and 
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1 ‘‘(3) may be exercised only in retaining employ2 ees of the Administration or in appointing individ3 uals who were not employees of another Federal 

4 agency as defined under section 5102(a)(1). 

5 ‘‘(c)(1) Notwithstanding section 5377, the Adminis6 trator may fix the rate of basic pay for a position in the 

7 Administration in accordance with this section. The Ad8 ministrator may not delegate this authority. 

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

10 this section may not exceed 10 at any time. 

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

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

13 comparability payments) which would otherwise be pay14 able for the position involved if this section had never been 

15 enacted. 

16 ‘‘(2) The annual rate of basic pay fixed under this 

17 section may not exceed the per annum rate of salary pay18 able under section 104 of title 3. 

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

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

21 is receiving pay at a rate fixed under this section, no allow22 ance, differential, bonus, award, or similar cash payment 

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

24 when added to basic pay paid or payable to such employee 

25 (for service performed in such calendar year as an em-
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1 ployee in the executive branch or as an employee outside 

2 the executive branch to whom chapter 51 applies), such 

3 payment would cause the total to exceed the per annum 

4 rate of salary which, as of the end of such calendar year, 

5 is payable under section 104 of title 3. 

6 ‘‘§ 9808. Assignments of intergovernmental personnel 

7 ‘‘For purposes of applying the third sentence of sec8 tion 3372(a) (relating to the authority of the head of a 

9 Federal agency to extend the period of an employee’s as10 signment to or from a State or local government, institu11 tion of higher education, or other organization), the Ad12 ministrator may, with the concurrence of the employee and 

13 the government or organization concerned, take any action 

14 which would be allowable if such sentence had been 

15 amended by striking ‘two’ and inserting ‘four’.

16 ‘‘§ 9809. Enhanced demonstration project authority 

17 ‘‘When conducting a demonstration project at the Ad18 ministration, section 4703(d)(1)(A) may be applied by 

19 substituting ‘such numbers of individuals as determined 

20 by the Administrator’ for ‘not more than 5,000 individ21 uals’. 

22 ‘‘SUBCHAPTER II—PERSONNEL PROVISIONS 

23 ‘‘§ 9831. Definitions 

24 ‘‘For purposes of this subchapter—
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1 ‘‘(1) the term ‘Administration’ means the Na2 tional Aeronautics and Space Administration; and 

3 ‘‘(2) the term ‘Administrator’ means the Ad4 ministrator of the National Aeronautics and Space 

5 Administration. 

6 ‘‘§ 9832. Administration and private sector exchange 

7 assignments 

8 ‘‘(a) For purposes of this section—

9 ‘‘(1) the term ‘private sector employee’ means 

10 an employee of a private sector entity; and 

11 ‘‘(2) the term ‘private sector entity’ means an 

12 organization, company, corporation, or other busi13 ness concern, or a foreign government or agency of 

14 a foreign government, that is not a State, local gov15 ernment, Federal agency, or other organization as 

16 defined under section 3371 (1), (2), (3), and (4), re17 spectively. 

18 ‘‘(b)(1) On request from or with the concurrence of 

19 a private sector entity, and with the consent of the em20 ployee concerned, the Administrator may arrange for the 

21 assignment of—

22 ‘‘(A) an employee of the Administration serving 

23 under a career or career-conditional appointment, a 

24 career appointee in the Senior Executive Service, or 

25 an individual under an appointment of equivalent 
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1 tenure in an excepted service position, but excluding 

2 employees in positions which have been excepted 

3 from the competitive service by reasons of their con4 fidential, policy-determining, policymaking, or policy5 advocating character, to a private sector entity; and 

6 ‘‘(B) an employee of a private sector entity to 

7 the Administration, 

8 for work of mutual concern to the Administration and the 

9 private sector entity that the Administrator determines 

10 will be beneficial to both. 

11 ‘‘(2) The period of an assignment under this section 

12 may not exceed 2 years. However, the Administrator may 

13 extend the period of assignment for not more than 2 addi14 tional years. 

15 ‘‘(3) An employee of the Administration may be as16 signed under this section only if the employee agrees, as 

17 a condition of accepting an assignment, to serve in the 

18 Administration upon the completion of the assignment for 

19 a period equal to the length of the assignment. The Ad20 ministrator may waive the requirement under this para21 graph, with the approval of the Office of Management and 

22 Budget, with respect to any employee if the Administrator 

23 determines it to be in the best interests of the United 

24 States to do so. 
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1 ‘‘(4) Each agreement required under paragraph (3) 

2 shall provide that if the employee fails to carry out the 

3 agreement (except in the case of a waiver made under 

4 paragraph (3)), the employee shall be liable to the United 

5 States for payment of all expenses (excluding salary) of 

6 the assignment. The amount due shall be treated as a debt 

7 due the United States. 

8 ‘‘(c)(1) An Administration employee assigned to a 

9 private sector entity under this section is deemed, during 

10 the assignment, to be on detail to a work assignment (as 

11 a detailee to the entity). 

12 ‘‘(2) An Administration employee assigned under this 

13 section on detail remains an employee of the Administra14 tion. Chapter 171 of title 28 and any other Federal tort 

15 liability statute apply to the Administration employee so 

16 assigned, and all defenses available to the United States 

17 under these laws or applicable provisions of State law shall 

18 remain in effect. The supervision of the duties of an Ad19 ministration employee assigned to the private sector entity 

20 through detail may be governed by agreement between the 

21 Administration and the private sector entity concerned. 

22 ‘‘(3) The assignment of an Administration employee 

23 on detail to a private sector entity under this section may 

24 be made with or without reimbursement by the private sec25 tor entity for the travel and transportation expenses to 
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1 or from the place of assignment, for the pay, or supple2 mental pay, or a part thereof, of the employee, or for the 

3 contribution of the Administration to the employee’s ben4 efit systems during the assignment. Any reimbursements 

5 shall be credited to the appropriation of the Administra6 tion used for paying the travel and transportation ex7 penses, pay, or benefits, and not paid to the employee. 

8 ‘‘(d)(1) An employee of a private sector entity who 

9 is assigned to the Administration under an arrangement 

10 under this section shall be deemed on detail to the Admin11 istration. 

12 ‘‘(2) During the period of assignment, a private sec13 tor employee on detail to the Administration—

14 ‘‘(A) is not entitled to pay from the Administra15 tion, except to the extent that the pay received from 

16 the private sector entity is less than the appropriate 

17 rate of pay which the duties would warrant under 

18 the pay provisions of this title or other applicable 

19 authority; 

20 ‘‘(B) is deemed an employee of the Administra21 tion for the purpose of chapter 73 of this title, the 

22 Ethics in Government Act of 1978, section 27 of the 

23 Office of Federal Procurement Policy Act, sections 

24 201, 203, 205, 207, 208, 209, 602, 603, 606, 607, 

25 610, 643, 654, 1905, and 1913 of title 18, sections 
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1 1343, 1344, and 1349(b) of title 31, chapter 171 of 

2 title 28, and any other Federal tort liability statute, 

3 and any other provision of Federal criminal law, un4 less otherwise specifically exempted; 

5 ‘‘(C) notwithstanding subparagraph (B), is also 

6 deemed to be an employee of his or her private sec7 tor employer for purposes of section 208 of title 18; 

8 and 

9 ‘‘(D) is subject to such regulations as the Ad10 ministrator may prescribe. 

11 ‘‘(3) The supervision of the duties of an employee as12 signed under this subsection may be governed by agree13 ment between the Administration and the private sector 

14 entity. 

15 ‘‘(4) A detail of a private sector employee to the Ad16 ministration may be made with or without reimbursement 

17 by the Administration for the pay, or a part thereof, of 

18 the employee during the period of assignment, or for the 

19 contribution of the private sector entity, or a part thereof, 

20 to employee benefit systems. 

21 ‘‘(5)(A) A private sector employee on detail to the 

22 Administration under this section who suffers disability or 

23 dies as a result of personal injury sustained while in the 

24 performance of duties during the assignment shall be 

25 treated, for the purpose of subchapter I of chapter 81, 
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1 as an employee as defined under section 8101 who had 

2 sustained the injury in the performance of duties. 

3 ‘‘(B) When an employee (or the employee’s depend4 ents in case of death) entitled by reason of injury or death 

5 to benefits under subchapter I of chapter 81 is also enti6 tled to benefits from the employee’s private sector em7 ployer for the same injury or death, the employee (or the 

8 employee’s dependents in case of death) shall elect which 

9 benefits the employee will receive. The election shall be 

10 made within 1 year after the injury or death, or such fur11 ther time as the Secretary of Labor may allow for reason12 able cause shown. When made, the election is irrevocable. 

13 ‘‘(C) Except as provided in subparagraphs (A) and 

14 (B), and notwithstanding any other law, the United 

15 States, any instrumentality of the United States, or an 

16 employee, agent, or assign of the United States shall not 

17 be liable to—

18 ‘‘(i) a private sector employee assigned to the 

19 Administration under this section; 

20 ‘‘(ii) such employee’s legal representative, 

21 spouse, dependents, survivors, or next of kin; or 

22 ‘‘(iii) any other person, including any third 

23 party as to whom such employee, or that employee’s 

24 legal representative, spouse, dependents, survivors, 

25 or next of kin, has a cause of action arising out of 
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1 an injury or death sustained in the performance of 

2 duty pursuant to an assignment under this section, 

3 otherwise entitled to recover damages from the 

4 United States, any instrumentality of the United 

5 States, or any employee, agency, or assign of the 

6 United States, 

7 with respect to any injury or death suffered by a private 

8 sector employee sustained in the performance of duties 

9 pursuant to an assignment under this section. 

10 ‘‘(e)(1) Appropriations of the Administration are 

11 available to pay, or reimburse, an Administration or pri12 vate sector employee in accordance with—

13 ‘‘(A) subchapter I of chapter 57 for the ex14 penses of—

15 ‘‘(i) travel, including a per diem allowance, 

16 to and from the assignment location; 

17 ‘‘(ii) a per diem allowance at the assign18 ment location during the period of the assign19 ment; and 

20 ‘‘(iii) travel, including a per diem allow21 ance, while traveling on official business away 

22 from the employee’s designated post of duty 

23 during the assignment when the Administrator 

24 considers the travel to be in the interest of the 

25 United States; 
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1 ‘‘(B) section 5724 for the expenses of transpor2 tation of the employee’s immediate family, household 

3 goods, and personal effects to and from the assign4 ment location; 

5 ‘‘(C) section 5724a(a) for the expenses of per 

6 diem allowances for the immediate family of the em7 ployee to and from the assignment location; 

8 ‘‘(D) section 5724a(c) for subsistence expenses 

9 of the employee and immediate family while occu10 pying temporary quarters at the assignment location 

11 and on return to the employee’s former post of duty; 

12 ‘‘(E) section 5724a(g) to be used by the em13 ployee for miscellaneous expenses related to change 

14 of station where movement or storage of household 

15 goods is involved; and 

16 ‘‘(F) section 5726(c) for the expenses of non17 temporary storage of household goods and personal 

18 effects in connection with assignment at an isolated 

19 location. 

20 ‘‘(2) Expenses specified in paragraph (1), other than 

21 those in paragraph (1)(A)(iii), may not be allowed in con22 nection with the assignment of an Administration or pri23 vate sector employee under this section, unless and until 

24 the employee agrees in writing to complete the entire pe25 riod of his assignment or 1 year, whichever is shorter, un-
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1 less separated or reassigned for reasons beyond his control 

2 that are acceptable to the Administrator. If the employee 

3 violates the agreement, the money spent by the United 

4 States for these expenses is recoverable from the employee 

5 as a debt due the United States. The Administrator may 

6 waive in whole or in part a right of recovery under this 

7 paragraph with respect to a private sector employee on 

8 assignment with the Administration or an Administration 

9 employee on assignment with a private sector entity. 

10 ‘‘(3) Appropriations of the Administration are avail11 able to pay expenses under section 5742 with respect to 

12 an Administration or private sector employee assigned 

13 under this authority. 

14 ‘‘(f) A private sector entity may not charge the Fed15 eral Government, as direct or indirect costs under a Fed16 eral contract, the costs of pay or benefits paid by the enti17 ty to an employee assigned to the Administration under 

18 this section for the period of the assignment. 

19 ‘‘§ 9833. Science and technology scholarship program 

20 ‘‘(a)(1) The Administrator may carry out a program 

21 of entering into contractual agreements with individuals 

22 described under paragraph (2) under which—

23 ‘‘(A) the Administrator agrees to provide to the 

24 individuals scholarships for pursuing, at accredited 

25 institutions of higher education, academic programs 
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1 appropriate for careers in professions needed by the 

2 Administration; and 

3 ‘‘(B) the individuals agree to serve as employees 

4 of the Administration, for the period described under 

5 subsection (b), in positions needed by the Adminis6 tration and for which the individuals are qualified. 

7 ‘‘(2) The individuals referred to under paragraph (1) 

8 are individuals who—

9 ‘‘(A) are enrolled or accepted for enrollment as 

10 full-time students at accredited institutions of higher 

11 education in an academic field or discipline pre12 scribed by the Administration; 

13 ‘‘(B) are United States citizens; and 

14 ‘‘(C) at the time of the initial scholarship 

15 award, are not Federal employees as defined under 

16 section 2105. 

17 ‘‘(b)(1) For purposes of subsection (a)(1)(B), the pe18 riod of service for which an individual is obligated to serve 

19 as an employee of the Administration is, subject to sub20 paragraph (A) of paragraph (2), 12 months for each aca21 demic year for which the scholarship under such sub22 section is provided. 

23 ‘‘(2)(A) Subject to subparagraph (B), the Adminis24 trator may provide a scholarship under this section if the 

25 individual applying for the scholarship agrees that, not 
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1 later than 60 days after obtaining the educational degree 

2 involved, the individual will begin serving full-time as an 

3 employee in satisfaction of the period of service that the 

4 individual is obligated to provide. 

5 ‘‘(B) The Administrator may defer the obligation of 

6 an individual to provide a period of service under this sub7 section, if the Administrator determines that such a defer8 ral is appropriate. 

9 ‘‘(c)(1) The Administrator may provide a scholarship 

10 under subsection (a) for an academic year if— 

11 ‘‘(A) the individual applying for the scholarship 

12 has submitted to the Administrator a proposed aca13 demic program leading to a degree in an academic 

14 field or discipline approved by the Administration; or 

15 ‘‘(B) the individual agrees that the program will 

16 not be altered without the approval of the Adminis17 trator. 

18 ‘‘(2) The Administrator may provide a scholarship 

19 under this section for an academic year if the individual 

20 applying for the scholarship agrees to maintain a high 

21 level of academic standing as defined by regulation. 

22 ‘‘(3) The dollar amount of a scholarship for an aca23 demic year shall not exceed— 

24 ‘‘(A) the limits established by regulation under 

25 paragraph (4); or 
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1 ‘‘(B) the total costs incurred in attending the 

2 institution involved. 

3 ‘‘(4) A scholarship may be expended for tuition, fees, 

4 and other authorized expenses as established by regula5 tion. 

6 ‘‘(5) The Administrator may enter into a contractual 

7 agreement with an institution of higher education under 

8 which the amounts provided in the scholarship for tuition, 

9 fees, and other authorized expenses are paid directly to 

10 the institution with respect to which a scholarship is pro11 vided. 

12 ‘‘(6) An individual may not receive a scholarship for 

13 longer than 4 academic years, unless an extension is 

14 granted by the Administrator. 

15 ‘‘(d)(1)(A) Any scholarship recipient who fails to 

16 maintain a high level of academic standing, who is dis17 missed from an educational institution for disciplinary 

18 reasons, or who voluntarily terminates academic training 

19 before graduation from the educational program for which 

20 the scholarship was awarded, shall— 

21 ‘‘(i) be in breach of the contractual agreement; 

22 and 

23 ‘‘(ii) in lieu of any service obligation arising 

24 under such agreement, be liable to the United States 

25 for repayment of all scholarship funds paid to that 
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1 recipient and to the educational institution on their 

2 behalf under the agreement within 1 year after the 

3 date of default. 

4 ‘‘(B) The repayment period may be extended by the 

5 Administrator when determined to be necessary, as estab6 lished by regulation. A penalty for failure to complete the 

7 academic program for which the scholarship was awarded 

8 may be assessed at the discretion of the Administrator, 

9 in addition to the repayment with interest as provided 

10 under paragraph (3). 

11 ‘‘(2)(A) A scholarship recipient who, for any reason, 

12 fails to begin or complete that recipient’s service obligation 

13 after completion of academic training, or fails to comply 

14 with the terms and conditions of deferment established by 

15 the Administrator, shall be in breach of the contractual 

16 agreement. 

17 ‘‘(B)(i) In this subparagraph—

18 ‘‘(I) the term ‘A’ means the amount the United 

19 States is entitled to recover; 

20 ‘‘(II) the term ‘F’ means the sum of the 

21 amounts paid to or on behalf of the participant; 

22 ‘‘(III) the term ‘t’ means the total number of 

23 months of the period of obligated service the partici24 pant is required to serve; and 
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1 ‘‘(IV) the term ‘s’ means the number of months 

2 of the period of obligated service served by the par3 ticipant. 

4 ‘‘(ii) When a recipient breaches the agreement as pro5 vided under subparagraph (A), the United States shall be 

6 entitled to recover damages equal to 3 times the scholar7 ship award, in accordance with the following formula: 

8 ‘‘A=(3F)[(t-s)/t] 

9 ‘‘(C) The damages that the United States is entitled 

10 to recover shall be paid within 1 year after the date of 

11 default. 

12 ‘‘(3) Beginning 90 days after default, interest shall 

13 accrue on the payments required to be made under this 

14 subsection, at a rate to be determined by regulation estab15 lished by the Administrator. 

16 ‘‘(e)(1) Any obligation of an individual incurred 

17 under this section for service or payment of damages may 

18 be canceled upon the death of the individual. 

19 ‘‘(2) The Administrator shall by regulation provide 

20 for the partial or total waiver or suspension of any obliga21 tion of service or payment incurred by an individual under 

22 this section if—

23 ‘‘(A) the compliance by the individual is impos24 sible or would involve extreme hardship to the indi25 vidual; or 
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1 ‘‘(B) enforcement of such obligation with re2 spect to any individual would be contrary to the best 

3 interests of the Government. 

4 ‘‘(f) The Administrator may provide a scholarship 

5 under this section if an application for the scholarship is 

6 submitted to the Administrator and the application is in 

7 such form, is made in such manner, and contains such 

8 agreements, assurance, and information as the Adminis9 trator determines to be necessary to carry out this section. 

10 ‘‘(g)(1) There are authorized to be appropriated to 

11 the Administration to carry out this section $10,000,000 

12 for fiscal year 2004 and $10,000,000 for each succeeding 

13 fiscal year. 

14 ‘‘(2) Amounts appropriated for a fiscal year for schol15 arships under this section shall remain available for 2 fis16 cal years. 

17 ‘‘§ 9834. Distinguished scholar appointment authority 

18 ‘‘(a) In this section—

19 ‘‘(1) the term ‘professional position’ means a 

20 position that is classified to an occupational series 

21 identified by the Office of Personnel Management as 

22 a position 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 

10 nature, 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 

15 3318, candidates directly to General Schedule professional 

16 positions in the Administration for which public notice has 

17 been given, if—

18 ‘‘(1) with respect to a position at the GS–7 

19 level, the individual—

20 ‘‘(A) received, from an accredited institu21 tion authorized to grant baccalaureate degrees, 

22 a baccalaureate degree in a field of study for 

23 which possession of that degree in conjunction 

24 with academic achievements meets the qualifica25 tion standards as prescribed by the Office of 
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1 Personnel Management for the position to 

2 which the 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 

5 grade point average of 3.5 or higher for courses 

6 in the field of study required to qualify for the 

7 position; 

8 ‘‘(2) with respect to a position at the GS–9 

9 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 

13 possession of that degree meets the qualifica14 tion standards at this grade level as prescribed 

15 by the Office of Personnel Management for the 

16 position to which the individual is being ap17 pointed; and 

18 ‘‘(B) achieved a cumulative grade point av19 erage of 3.5 or higher on a 4.0 scale in grad20 uate coursework in the field of study required 

21 for the position; 

22 ‘‘(3) with respect to a position at the GS–11 

23 level, the individual—

24 ‘‘(A) received, from an accredited institu25 tion authorized to grant graduate degrees, a 
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1 graduate degree in a field of study for which 

2 possession of that degree meets the qualifica3 tion standards at this grade level as prescribed 

4 by the Office of Personnel Management for the 

5 position to which the individual is being ap6 pointed; and 

7 ‘‘(B) achieved a cumulative grade point av8 erage of 3.5 or higher on a 4.0 scale in grad9 uate coursework in the field of study required 

10 for the position; or 

11 ‘‘(4) with respect to a research position at the 

12 GS–12 level, the individual—

13 ‘‘(A) received, from an accredited institu14 tion authorized to grant graduate degrees, a 

15 graduate degree in a field of study for which 

16 possession of that degree meets the qualifica17 tion standards at this grade level as prescribed 

18 by the Office of Personnel Management for the 

19 position to which the individual is being ap20 pointed; and 

21 ‘‘(B) achieved a cumulative grade point av22 erage of 3.5 or higher on a 4.0 scale in grad23 uate coursework in the field of study required 

24 for the position. 
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1 ‘‘(c) Veterans’ preference procedures shall apply 

2 when selecting candidates under this section. Preference 

3 eligibles who meet the criteria for distinguished scholar 

4 appointments shall be considered ahead of nonpreference 

5 eligibles. 

6 ‘‘(d) An appointment made under this authority shall 

7 be a career-conditional appointment in the competitive 

8 civil service. 

9 ‘‘§ 9835. Travel and transportation expenses of cer10 tain new appointees 

11 ‘‘(a) In this section, the term ‘new appointee’ 

12 means—

13 ‘‘(1) a person newly appointed or reinstated to 

14 Federal service to the Administration to—

15 ‘‘(A) a career or career-conditional ap16 pointment; 

17 ‘‘(B) a term appointment; 

18 ‘‘(C) an excepted service appointment that 

19 provides for noncompetitive conversion to a ca20 reer or career-conditional appointment; 

21 ‘‘(D) a career or limited term Senior Exec22 utive Service appointment; 

23 ‘‘(E) an appointment made under section 

24 203(c)(2)(A) of the National Aeronautics and 

25 Space Act of 1958 (42 U.S.C. 2473(c)(2)(A)); 
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1 ‘‘(F) an appointment to a position estab2 lished under section 3104; or 

3 ‘‘(G) an appointment to a position estab4 lished under section 5108; or 

5 ‘‘(2) a student trainee who, upon completion of 

6 academic work, is converted to an appointment in 

7 the Administration that is identified in paragraph 

8 (1) in accordance with an appropriate authority. 

9 ‘‘(b) The Administrator may pay the travel, transpor10 tation, and relocation expenses of a new appointee to the 

11 same extent, in the same manner, and subject to the same 

12 conditions as the payment of such expenses under sections 

13 5724, 5724a, 5724b, and 5724c to an employee trans14 ferred in the interests of the United States Government. 

15 ‘‘§ 9836. Annual leave enhancements 

16 ‘‘(a)(1) In this subsection—

17 ‘‘(A) the term ‘newly appointed employee’ 

18 means an individual who is first appointed—

19 ‘‘(i) regardless of tenure, as an employee of 

20 the Federal Government; or 

21 ‘‘(ii) as an employee of the Federal Gov22 ernment following a break in service of at least 

23 90 days after that individual’s last period of 

24 Federal employment, other than—
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1 ‘‘(I) employment under the Student 

2 Educational Employment Program admin3 istered by the Office of Personnel Manage4 ment; 

5 ‘‘(II) employment as a law clerk train6 ee; 

7 ‘‘(III) employment under a short-term 

8 temporary appointing authority while a 

9 student during periods of vacation from 

10 the educational institution at which the 

11 student is enrolled; 

12 ‘‘(IV) employment under a provisional 

13 appointment if the new appointment is per14 manent and immediately follows the provi15 sional appointment; or 

16 ‘‘(V) employment under a temporary 

17 appointment that is neither full-time nor 

18 the principal employment of the individual; 

19 ‘‘(B) the term ‘period of qualified non-Federal 

20 service’ means any period of service performed by an 

21 individual that—

22 ‘‘(i) was performed in a position the duties 

23 of which were directly related to the duties of 

24 the position in the Administration to which that 
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1 individual will fill as a newly appointed em2 ployee; and 

3 ‘‘(ii) except for this section would not oth4 erwise be service performed by an employee for 

5 purposes of section 6303; and 

6 ‘‘(C) the term ‘directly related to the duties of 

7 the position’ means duties and responsibilities in the 

8 same line of work which require similar qualifica9 tions. 

10 ‘‘(2)(A) For purposes of section 6303, the Adminis11 trator may deem a period of qualified non-Federal service 

12 performed by a newly appointed employee to be a period 

13 of service of equal length performed as an employee. 

14 ‘‘(B) A period deemed by the Administrator under 

15 subparagraph (A) shall continue to apply to the employee 

16 during—

17 ‘‘(i) the period of Federal service in which the 

18 deeming is made; and 

19 ‘‘(ii) any subsequent period of Federal service. 

20 ‘‘(3)(A) Notwithstanding section 6303(a), the annual 

21 leave accrual rate for an employee of the Administration 

22 in a position paid under section 5376 or 5383, or for an 

23 employee in an equivalent category whose rate of basic pay 

24 is greater than the rate payable at GS–15, step 10, shall 

25 be 1 day for each full biweekly pay period.
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1 ‘‘(B) The accrual rate established under this para2 graph shall continue to apply to the employee during—

3 ‘‘(i) the period of Federal service in which such 

4 accrual rate first applies; and 

5 ‘‘(ii) any subsequent period of Federal service. 

6 ‘‘§ 9837. Limited appointments to Senior Executive 

7 Service positions 

8 ‘‘(a) In this section—

9 ‘‘(1) the term ‘career reserved position’ means 

10 a position in the Administration designated under 

11 section 3132(b) which may be filled only by—

12 ‘‘(A) a career appointee; or 

13 ‘‘(B) a limited emergency appointee or a 

14 limited term appointee—

15 ‘‘(i) who, immediately before entering 

16 the career reserved position, was serving 

17 under a career or career-conditional ap18 pointment outside the Senior Executive 

19 Service; or 

20 ‘‘(ii) whose limited emergency or lim21 ited term appointment is approved in ad22 vance by the Office of Personnel Manage23 ment; 

24 ‘‘(2) the term ‘limited emergency appointee’ has 

25 the meaning given under section 3132; and 
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1 ‘‘(3) the term ‘limited term appointee’ means 

2 an individual appointed to a Senior Executive Serv3 ice position in the Administration to meet a bona 

4 fide temporary need, as determined by the Adminis5 trator. 

6 ‘‘(b) The number of career reserved positions which 

7 are filled by an appointee as described under subsection 

8 (a)(1)(B) may not exceed 10 percent of the total number 

9 of Senior Executive Service positions allocated to the Ad10 ministration. 

11 ‘‘(c) Notwithstanding sections 3132 and 3394(b)—

12 ‘‘(1) the Administrator may appoint an indi13 vidual to any Senior Executive Service position in 

14 the Administration as a limited term appointee 

15 under this section for a period of—

16 ‘‘(A) 4 years or less to a position the du17 ties of which will expire at the end of such 

18 term; or 

19 ‘‘(B) 1 year or less to a position the duties 

20 of which are continuing; and 

21 ‘‘(2) in rare circumstances, the Administrator 

22 may authorize an extension of a limited appointment 

23 under—

24 ‘‘(A) paragraph (1)(A) for a period not to 

25 exceed 2 years; and 
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1 ‘‘(B) paragraph (1)(B) for a period not to 

2 exceed 1 year. 

3 ‘‘(d) A limited term appointee who has been ap4 pointed in the Administration from a career or career-con5 ditional appointment outside the Senior Executive Service 

6 shall have reemployment rights in the agency from which 

7 appointed, or in another agency, under requirements and 

8 conditions established by the Office of Personnel Manage9 ment. The Office shall have the authority to direct such 

10 placement in any agency. 

11 ‘‘(e) Notwithstanding section 3394(b) and section 

12 3395—

13 ‘‘(1) a limited term appointee serving under a 

14 term prescribed under this section may be reas15 signed to another Senior Executive Service position 

16 in the Administration, the duties of which will expire 

17 at the end of a term of 4 years or less; and 

18 ‘‘(2) a limited term appointee serving under a 

19 term prescribed under this section may be reas20 signed to another continuing Senior Executive Serv21 ice position in the Administration, except that the 

22 appointee may not serve in 1 or more positions in 

23 the Administration under such appointment in ex24 cess of 1 year, except that in rare circumstances, the 
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1 Administrator may approve an extension up to an 

2 additional 1 year. 

3 ‘‘(f) A limited term appointee may not serve more 

4 than 7 consecutive years under any combination of limited 

5 appointments. 

6 ‘‘(g) Notwithstanding section 5384, the Adminis7 trator may authorize performance awards to limited term 

8 appointees in the Administration in the same amounts and 

9 in the same manner as career appointees. 

10 ‘‘§ 9838. Superior qualifications pay 

11 ‘‘(a) In this section the term ‘employee’ means an em12 ployee as defined under section 2105 who is employed by 

13 the Administration. 

14 ‘‘(b) Notwithstanding section 5334, the Adminis15 trator may set the pay of an employee paid under the Gen16 eral Schedule at any step within the pay range for the 

17 grade of the position, based on the superior qualifications 

18 of the employee, or the special need of the Administration. 

19 ‘‘(c) If an exercise of the authority under this section 

20 relates to a current employee selected for another position 

21 within the Administration, a determination shall be made 

22 that the employee’s contribution in the new position will 

23 exceed that in the former position, before setting pay 

24 under this section. 
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1 ‘‘(d) Pay as set under this section is basic pay for 

2 such 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 sec5 tion was made, or a successor position, the pay earned 

6 under such position may be used in succeeding actions to 

7 set pay under chapter 53. 

8 ‘‘(f) The Administrator may waive the restrictions in 

9 subsection (e), based on criteria established in the plan 

10 required under subsection (g). 

11 ‘‘(g) Before setting any employee’s pay under this 

12 section, the Administrator shall submit a plan to the Of13 fice 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 

22 incentives; and 

23 ‘‘(5) a process to evaluate the effectiveness of 

24 this section.’’. 

25 (b) TECHNICAL AND CONFORMING AMENDMENT.—
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1 (1) TABLE OF CHAPTERS.—The table of chap2 ters for part III of title 5, United States Code, is 

3 amended by adding at the end the following:

‘‘98. National Aeronautics and Space Administration ........ 9801’’.

4 (2) COMPENSATION FOR CERTAIN EXCEPTED

5 PERSONNEL.—

6 (A) IN GENERAL.—Subparagraph (A) of 

7 section 203(c)(2) of the National Aeronautics 

8 and Space Act of 1958 (42 U.S.C. 

9 2473(c)(2)(A)) is amended by striking ‘‘the 

10 highest rate of grade 18 of the General Sched11 ule of the Classification Act of 1949, as amend12 ed,’’ and inserting ‘‘the rate of basic pay pay13 able for level III of the Executive Schedule,’’. 

14 (B) EFFECTIVE DATE.—Notwithstanding 

15 section 313, the amendment made by this para16 graph shall take effect on the first day of the 

17 first pay period beginning on or after the effec18 tive date of this Act. 

19 (3) COMPENSATION CLARIFICATION.—Section 

20 209 of title 18, United States Code, as amended by 

21 section 209(g)(2) of the E-Government Act of 2002 

22 (Public Law 107–347; 116 Stat. 2932), is amended 

23 by adding at the end the following: 
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1 ‘‘(h)(1) In this subsection, the term ‘private sector 

2 entity’ has the meaning given under section 9832(a) of 

3 title 5. 

4 ‘‘(2) This section does not prohibit an employee of 

5 a private sector entity, while assigned to the National Aer6 onautics and Space Administration under section 9832 of 

7 title 5, from continuing to receive pay and benefits from 

8 that entity in accordance with section 9832 of that title.’’. 

9 (4) OTHER AMENDMENTS.—Section 125(c)(1) 

10 of Public Law 100–238 (5 U.S.C. 8432 note), as 

11 amended by section 209(g)(3) of the E-Government 

12 Act of 2002 (Public Law 107–347; 116 Stat. 2932), 

13 is amended—

14 (A) in subparagraph (C), by striking ‘‘or’’ 

15 at the end; 

16 (B) in subparagraph (D), by striking 

17 ‘‘and’’ at the end and inserting ‘‘or’’; and 

18 (C) by adding at the end the following: 

19 ‘‘(E) an individual assigned from the Na20 tional Aeronautics and Space Administration to 

21 a private sector organization under section 

22 9832 of title 5, United States Code; and’’. 

23 SEC. 312. EFFECTIVE DATE. 

24 This subtitle shall take effect 180 days after the date 

25 of enactment of this Act. 
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1 TITLE IV—HUMAN CAPITAL 

2 PERFORMANCE FUND 

3 SEC. 401. HUMAN CAPITAL PERFORMANCE FUND. 

4 (a) Subpart D of part III of title 5, United States 

5 Code, is amended by inserting after chapter 53 the fol6 lowing:

‘‘CHAPTER 54—HUMAN CAPITAL 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.

7 ‘‘§ 5401. Purpose 

8 ‘‘The purpose of this chapter is to promote, through 

9 the creation of a Human Capital Performance Fund, 

10 greater performance in the Federal Government. Monies 

11 from the Fund will be used to reward agencies’ highest 

12 performing and most valuable employees. This Fund will 

13 offer Federal managers a new tool to recognize employee 

14 performance that is critical to the achievement of agency 

15 missions. 

16 ‘‘§ 5402. Definitions 

17 ‘‘For the purpose of this chapter—

18 ‘‘(1) ‘agency’ means an Executive agency under 

19 section 105, but does not include the General Ac20 counting Office; 
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1 ‘‘(2) ‘employee’ includes—

2 ‘‘(A) an individual paid under a statutory 

3 pay system defined in section 5302(1); 

4 ‘‘(B) a prevailing rate employee, as defined 

5 in section 5342(a)(2); and 

6 ‘‘(C) a category of employees included by 

7 the Office of Personnel Management following 

8 the review of an agency plan under section 

9 5403(b)(1); 

10 but does not include—

11 ‘‘(i) an individual paid at an annual rate of 

12 basic pay for a level of the Executive Schedule, 

13 under subchapter II of chapter 53, or at a rate 

14 provided for one of those levels under another 

15 provision of law; 

16 ‘‘(ii) a member of the Senior Executive 

17 Service paid under subchapter VIII of chapter 

18 53, or an equivalent system; 

19 ‘‘(iii) an administrative law judge paid 

20 under section 5372; 

21 ‘‘(iv) a contract appeals board member 

22 paid under section 5372a; 

23 ‘‘(v) an administrative appeals judge paid 

24 under section 5372b; and 
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1 ‘‘(vi) an individual in a position which is 

2 excepted from the competitive service because of 

3 its confidential, policy-determining, policy-mak4 ing, or policy-advocating character; and 

5 ‘‘(3) ‘Office’ means the Office of Personnel 

6 Management. 

7 ‘‘§ 5403. Human Capital Performance Fund 

8 ‘‘(a) There is hereby established the Human Capital 

9 Performance Fund, to be administered by the Office for 

10 the purpose of this chapter. 

11 ‘‘(b)(1)(A) An agency shall submit a plan as de12 scribed in section 5406 to be eligible for consideration by 

13 the Office for an allocation under this section. An alloca14 tion shall be made only upon approval by the Office of 

15 an agency’s plan. 

16 ‘‘(B)(i) After the reduction for training required 

17 under section 5408, ninety percent of the remaining 

18 amount appropriated to the Fund may be allocated by the 

19 Office to the agencies. Of the amount to be allocated, an 

20 agency’s pro rata distribution may not exceed its pro rata 

21 share of Executive branch payroll. 

22 ‘‘(ii) If the Office does not allocate an agency’s full 

23 pro rata share, the undistributed amount remaining from 

24 that share will become available for distribution to other 

25 agencies, as provided in subparagraph (C). 
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1 ‘‘(C)(i) After the reduction for training under section 

2 5408, ten percent of the remaining amount appropriated 

3 to the Fund, as well as the amount of the pro rata share 

4 not distributed because of an agency’s failure to submit 

5 a satisfactory plan, shall be allocated among agencies with 

6 exceptionally high-quality plans. 

7 ‘‘(ii) An agency with an exceptionally high-quality 

8 plan is eligible to receive an additional distribution in addi9 tion to its full pro rata distribution. 

10 ‘‘(2) Each agency is required to provide to the Office 

11 such payroll information as the Office specifies necessary 

12 to determine the Executive branch payroll. 

13 ‘‘§ 5404. Human capital performance payments 

14 ‘‘(a)(1) Notwithstanding any other provision of law, 

15 the Office may authorize an agency to provide human cap16 ital performance payments to individual employees based 

17 on exceptional performance contributing to the achieve18 ment of the agency mission. 

19 ‘‘(2) The number of employees in an agency receiving 

20 payments from the Fund, in any year, shall not be more 

21 than the number equal to 15 percent of the agency’s aver22 age total civilian full- and part-time permanent employ23 ment for the previous fiscal year. 

24 ‘‘(b)(1) A human capital performance payment pro25 vided to an individual employee from the Fund, in any 
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1 year, shall not exceed 10 percent of the employee’s rate 

2 of basic pay. 

3 ‘‘(2) The aggregate of an employee’s rate of basic 

4 pay, adjusted by any locality-based comparability pay5 ments, and human capital performance pay, as defined by 

6 regulation, may not exceed the rate of basic pay for Execu7 tive Level IV in any year. 

8 ‘‘(c) No monies from the Human Capital Perform9 ance Fund may be used to pay for a new position, for 

10 other performance-related payments, or for recruitment or 

11 retention incentives paid under sections 5753 and 5754. 

12 ‘‘(d)(1) An agency may finance initial human capital 

13 performance payments using monies from the Human 

14 Capital Performance Fund, as available. 

15 ‘‘(2) In subsequent years, continuation of previously 

16 awarded human capital performance payments shall be fi17 nanced from other agency funds available for salaries and 

18 expenses. 

19 ‘‘§ 5405. Regulations 

20 ‘‘The Office shall issue such regulations as it deter21 mines to be necessary for the administration of this chap22 ter, including the administration of the Fund. The Office’s 

23 regulations shall include criteria governing—

24 ‘‘(1) an agency plan under section 5406; 
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1 ‘‘(2) the allocation of monies from the Fund to 

2 agencies; 

3 ‘‘(3) the nature, extent, duration, and adjust4 ment of, and approval processes for, payments to in5 dividual employees under this chapter; 

6 ‘‘(4) the relationship to this chapter of agency 

7 performance management systems; 

8 ‘‘(5) training of supervisors, managers, and 

9 other individuals involved in the process of making 

10 performance distinctions; and 

11 ‘‘(6) the circumstances under which funds may 

12 be allocated by the Office to an agency in amounts 

13 below or in excess of the agency’s pro rata share. 

14 ‘‘§ 5406. Agency plan 

15 ‘‘To be eligible for consideration by the Office for an 

16 allocation under this section, an agency shall—

17 ‘‘(1) submit a plan, subject to review and ap18 proval by the Office; 

19 ‘‘(2) demonstrate that its performance manage20 ment system supports agency strategic performance 

21 goals and objectives, and is used to make meaningful 

22 distinctions based on relative performance; 

23 ‘‘(3) provide sufficient training to supervisors, 

24 managers, and other individuals involved in the proc25 ess of making performance distinctions; 
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1 ‘‘(4) upon approval, receive an allocation of 

2 funding from the Office; 

3 ‘‘(5) make payments to individual employees in 

4 accordance with the agency’s approved plan; and 

5 ‘‘(6) provide such information to the Office re6 garding payments made and use of funds received 

7 under this section as the Office may specify. 

8 ‘‘§ 5407. Nature of payment 

9 ‘‘Any payment to an employee under this section shall 

10 be part of the employee’s basic pay for the purposes of 

11 subchapter III of chapter 83, and chapters 84 and 87, 

12 and for such other purposes (other than chapter 75) as 

13 the Office shall determine by regulation. 

14 ‘‘§ 5408. Appropriations 

15 ‘‘There is authorized to be appropriated $500 million 

16 for fiscal year 2004, and, for each subsequent fiscal year, 

17 such sums as may be necessary to carry out the provisions 

18 of this chapter. In the first year of implementation, up 

19 to 10 percent of the amount appropriated to the Fund 

20 shall be available to participating agencies to train super21 visors, managers, and other individuals involved in the ap22 praisal process on using performance management sys23 tems to make meaningful distinctions in employee per24 formance and on the use of the Fund.’’. 
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1 (b) The table of chapters for part III of title 5, 

2 United States Code, is amended by inserting after the 

3 item relating to chapter 53 the following:

‘‘54. Human Capital Performance Fund ................................... 5401’’.

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