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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1836 Introduced in House (IH)]

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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Civil Service and 
National Security Personnel Improvement Act''.
    (b) Table of Contents.--The table of contents for 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.

   TITLE I--DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM

SEC. 101. SHORT TITLE.

    This title may be cited as the ``National Security Personnel System 
Act''.

SEC. 102. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM.

    (a) In General.--(1) Subpart I of part III of title 5, United 
States Code, is amended by adding at the end the following new chapter:

 ``CHAPTER 99--DEPARTMENT OF DEFENSE 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.
``Sec. 9901. Definitions
    ``For purposes of this chapter--
            ``(1) the term `Director' means the Director of the Office 
        of Personnel Management; and
            ``(2) the term `Secretary' means the Secretary of Defense.
``Sec. 9902. Establishment of human resources management system
    ``(a) In General.--(1) Notwithstanding any other provision of this 
part or of part II of this title, the Secretary may, in regulations 
prescribed jointly with the Director, establish, and from time to time 
adjust, a human resources management system for some or all of the 
organizational or functional units of the Department of Defense. If the 
Secretary certifies that issuance or adjustment of a regulation, or the 
inclusion, exclusion, or modification of a particular provision 
therein, is essential to the national security, the Secretary may, 
subject to the direction of the President, waive the requirement in the 
preceding sentence that the regulation or adjustment be issued jointly 
with the Director.
    ``(2) Any regulations established pursuant to this chapter shall be 
established as internal rules of departmental procedure, consistent 
with section 553 of this title.
    ``(b) System Requirements.--Any system established under subsection 
(a) shall--
            ``(1) be flexible;
            ``(2) be contemporary;
            ``(3) not waive, modify, or otherwise affect--
                    ``(A) the public employment principles of merit and 
                fitness set forth in section 2301, including the 
                principles of hiring based on merit, fair treatment 
                without regard to political affiliation or other 
                nonmerit considerations, equal pay for equal work, and 
                protection of employees against reprisal for 
                whistleblowing;
                    ``(B) any provision of section 2302, relating to 
                prohibited personnel practices;
                    ``(C)(i) any provision of law referred to in 
                section 2302(b)(1), (8), and (9); or
                    ``(ii) any provision of law implementing any 
                provision of law referred to in section 2302(b)(1), 
                (8), and (9) by--
                            ``(I) providing for equal employment 
                        opportunity through affirmative action; or
                            ``(II) providing any right or remedy 
                        available to any employee or applicant for 
                        employment in the public service;
                    ``(D) any other provision of this part (as 
                described in subsection (c)); or
                    ``(E) any rule or regulation prescribed under any 
                provision of law referred to in this paragraph;
            ``(4) ensure that employees may organize, bargain 
        collectively as provided for in this chapter, and participate 
        through labor organizations of their own choosing in decisions 
        which affect them, subject to the provisions of this chapter 
        and any exclusion from coverage or limitation on negotiability 
        established pursuant to law; and
            ``(5) not be limited by any specific law or authority under 
        this title that is waivable under this chapter or by any 
        provision of this chapter or any rule or regulation prescribed 
        under this title that is waivable under this chapter, except as 
        specifically provided for in this section.
    ``(c) Other Nonwaivable Provisions.--The other provisions of this 
part referred to in subsection (b)(3)(D) are (to the extent not 
otherwise specified in this title)--
            ``(1) subparts A, E, G, and H of this part;
            ``(2) chapters 34, 45, 47, 57, 72, 73, and 79; and
            ``(3) sections 3131, 3132(a), 3305(b), 3309, 3310, 3311, 
        3312, 3313, 3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 3352, 
        3363, 3501, 3502(b), and 3504.
    ``(d) Limitations Relating to Pay.--(1) Nothing in this section 
shall constitute authority to modify the pay of any employee who serves 
in an Executive Schedule position under subchapter II of chapter 53 of 
this title.
    ``(2) Except as provided for in paragraph (1), the total amount in 
a calendar year of allowances, differentials, bonuses, awards, or other 
similar cash payments paid under this title to any employee who is paid 
under section 5376 or 5383 of this title or under title 10 or under 
other comparable pay authority established for payment of Department of 
Defense senior executive or equivalent employees may not exceed the 
total annual compensation payable to the Vice President under section 
104 of title 3.
    ``(e) Provisions To Ensure Collaboration With Employee 
Representatives.--(1) In order to ensure that the authority of this 
section is exercised in collaboration with, and in a manner that 
ensures the participation of, employee representatives in the planning, 
development, and implementation of any human resources management 
system or adjustments to such system under this section, the Secretary 
and the Director shall provide for the following:
            ``(A) The Secretary and the Director shall, with respect to 
        any proposed system or adjustment--
                    ``(i) provide to the employee representatives 
                representing any employees who might be affected a 
                written description of the proposed system or 
                adjustment (including the reasons why it is considered 
                necessary);
                    ``(ii) give such representatives at least 30 
                calendar days (unless extraordinary circumstances 
                require earlier action) to review and make 
                recommendations with respect to the proposal; and
                    ``(iii) give any recommendations received from such 
                representatives under clause (ii) full and fair 
                consideration in deciding whether or how to proceed 
                with the proposal.
            ``(B) Following receipt of recommendations, if any, from 
        such employee representatives with respect to a proposal 
        described in subparagraph (A), the Secretary and the Director 
        shall accept such modifications to the proposal in response to 
        the recommendations as they determine advisable and shall, with 
        respect to any parts of the proposal as to which they have not 
        accepted the recommendations--
                    ``(i) notify Congress of those parts of the 
                proposal, together with the recommendations of the 
                employee representatives;
                    ``(ii) meet and confer for not less than 30 
                calendar days with the employee representatives, in 
                order to attempt to reach agreement on whether or how 
                to proceed with those parts of the proposal; and
                    ``(iii) at the Secretary's option, or if requested 
                by a majority of the employee representatives 
                participating, use the services of the Federal 
                Mediation and Conciliation Service during such meet and 
                confer period to facilitate the process of attempting 
                to reach agreement.
            ``(C)(i) Any part of the proposal as to which the 
        representatives do not make a recommendation, or as to which 
        the recommendations are accepted by the Secretary and the 
        Director, may be implemented immediately.
            ``(ii) With respect to any parts of the proposal as to 
        which recommendations have been made but not accepted by the 
        Secretary and the Director, at any time after 30 calendar days 
        have elapsed since the initiation of the congressional 
        notification, consultation, and mediation procedures set forth 
        in subparagraph (B), if the Secretary determines, in the 
        Secretary's sole and unreviewable discretion, that further 
        consultation and mediation is unlikely to produce agreement, 
        the Secretary may implement any or all of such parts, including 
        any modifications made in response to the recommendations as 
        the Secretary determines advisable.
            ``(iii) The Secretary shall notify Congress promptly of the 
        implementation of any part of the proposal and shall furnish 
        with such notice an explanation of the proposal, any changes 
        made to the proposal as a result of recommendations from the 
        employee representatives, and of the reasons why implementation 
        is appropriate under this subparagraph.
            ``(D) If a proposal described in subparagraph (A) is 
        implemented, the Secretary and the Director shall--
                    ``(i) develop a method for the employee 
                representatives to participate in any further planning 
                or development which might become necessary; and
                    ``(ii) give the employee representatives adequate 
                access to information to make that participation 
                productive.
    ``(2) The Secretary may, at the Secretary's discretion, engage in 
any and all collaboration activities described in this subsection at an 
organizational level above the level of exclusive recognition.
    ``(3) In the case of any employees who are not within a unit with 
respect to which a labor organization is accorded exclusive 
recognition, the Secretary and the Director may develop procedures for 
representation by any appropriate organization which represents a 
substantial percentage of those employees or, if none, in such other 
manner as may be appropriate, consistent with the purposes of this 
subsection.
    ``(4) Any procedures necessary to carry out this subsection shall 
be established as internal rules of department procedure which shall 
not be subject to review.
    ``(f) Provisions Regarding National Level Bargaining.--(1) Any 
human resources management system implemented or modified under this 
chapter may include employees of the Department of Defense from any 
bargaining unit with respect to which a labor organization has been 
accorded exclusive recognition under chapter 71 of this title.
    ``(2) For any bargaining unit so included under paragraph (1), the 
Secretary at his sole and exclusive discretion may bargain at an 
organizational level above the level of exclusive recognition. Any such 
bargaining shall--
            ``(A) be binding on all subordinate bargaining units at the 
        level of recognition and their exclusive representatives, and 
        the Department of Defense and its subcomponents, without regard 
        to levels of recognition;
            ``(B) supersede all other collective bargaining agreements, 
        including collective bargaining agreements negotiated with an 
        exclusive representative at the level of recognition, except as 
        otherwise determined by the Secretary;
            ``(C) not be subject to further negotiations for any 
        purpose, including bargaining at the level of recognition, 
        except as provided for by the Secretary; and
            ``(D) except as otherwise specified in this chapter, not be 
        subject to review or to statutory third-party dispute 
        resolution procedures outside the Department of Defense.
    ``(3) The National Guard Bureau and the Army and Air Force National 
Guard are excluded from coverage under this subsection.
    ``(4) Any bargaining completed pursuant to this subsection with a 
labor organization not otherwise having national consultation rights 
with the Department of Defense or its subcomponents shall not create 
any obligation on the Department of Defense or its subcomponents to 
confer national consultation rights on such a labor organization.
    ``(g) Provisions Relating to Appellate Procedures.--(1) It is the 
sense of Congress that--
            ``(A) employees of the Department of Defense are entitled 
        to fair treatment in any appeals that they bring in decisions 
        relating to their employment; and
            ``(B) in prescribing regulations for any such appeals 
        procedures, the Secretary--
                    ``(i) should ensure that employees of the 
                Department of Defense are afforded the protections of 
                due process; and
                    ``(ii) toward that end, should be required to 
                consult with the Merit Systems Protection Board before 
                issuing any such regulations.
    ``(2) Any regulations under this section that relate to any matters 
within the purview of chapter 77 of this title shall--
            ``(A) be issued only after consultation with the Merit 
        Systems Protection Board;
            ``(B) ensure the availability of procedures that--
                    ``(i) are consistent with requirements of due 
                process; and
                    ``(ii) provide, to the maximum extent practicable, 
                for the expeditious handling of any matters involving 
                the Department of Defense; and
            ``(C) modify procedures under chapter 77 only insofar as 
        such modifications are designed to further the fair, efficient, 
        and expeditious resolution of matters involving the employees 
        of the Department of Defense.
    ``(h) Provisions Related to Separation and Retirement Incentives.--
(1) The Secretary may establish a program within the Department of 
Defense under which employees may be eligible for early retirement, 
offered separation incentive pay to separate from service voluntarily, 
or both. This authority may be used to reduce the number of personnel 
employed by the Department of Defense or to restructure the workforce 
to meet mission objectives without reducing the overall number of 
personnel. This authority is in addition to, and notwithstanding, any 
other authorities established by law or regulation for such programs.
    ``(2) For purposes of this section, the term `employee' means an 
employee of the Department of Defense, serving under an appointment 
without time limitation, except that such term does not include--
            ``(A) a reemployed annuitant under subchapter III of 
        chapter 83 or chapter 84 of this title, or another retirement 
        system for employees of the Federal Government;
            ``(B) an employee having a disability on the basis of which 
        such employee is or would be eligible for disability retirement 
        under any of the retirement systems referred to in paragraph 
        (1); or
            ``(C) for purposes of eligibility for separation incentives 
        under this section, an employee who is in receipt of a decision 
        notice of involuntary separation for misconduct or unacceptable 
        performance.
    ``(3) An employee who is at least 50 years of age and has completed 
20 years of service, or has at least 25 years of service, may, pursuant 
to regulations promulgated under this section, apply and be retired 
from the Department of Defense and receive benefits in accordance with 
chapter 83 or 84 if the employee has been employed continuously within 
the Department of Defense for more than 30 days before the date on 
which the determination to conduct a reduction or restructuring within 
1 or more Department of Defense Component is approved pursuant to the 
program established under subsection (a).
    ``(4)(A) Separation pay shall be paid in a lump sum or in 
installments and shall be equal to the lesser of--
            ``(i) an amount equal to the amount the employee would be 
        entitled to receive under section 5595(c) of this title, if the 
        employee were entitled to payment under such section; or
            ``(ii) $25,000.
    ``(B) Separation pay shall not be a basis for payment, and shall 
not be included in the computation, of any other type of Government 
benefit. Separation pay shall not be taken into account for the purpose 
of determining the amount of any severance pay to which an individual 
may be entitled under section 5595 of this title, based on any other 
separation.
    ``(C) Separation pay, if paid in installments, shall cease to be 
paid upon the recipient's acceptance of employment by the Federal 
Government, or commencement of work under a personal services contract 
as described in paragraph (6).
    ``(5)(A) An employee who receives separation pay under such program 
may not be reemployed by the Department of Defense for a 12-month 
period beginning on the effective date of the employee's separation, 
unless this prohibition is waived by the Secretary on a case-by-case 
basis.
    ``(B) An employee who receives separation pay under this section on 
the basis of a separation occurring on or after the date of the 
enactment of the Federal Workforce Restructuring Act of 1994 (Public 
Law 103-236; 108 Stat. 111) and accepts employment with the Government 
of the United States, or who commences work through a personal services 
contract with the United States within 5 years after the date of the 
separation on which payment of the separation pay is based, shall be 
required to repay the entire amount of the separation pay to the 
Department of Defense. If the employment is with an Executive agency 
(as defined by section 105 of this title) other than the Department of 
Defense, the Director may, at the request of the head of that agency, 
waive the repayment if the individual involved possesses unique 
abilities and is the only qualified applicant available for the 
position. If the employment is within the Department of Defense, the 
Secretary may waive the repayment if the individual involved is the 
only qualified applicant available for the position. If the employment 
is with an entity in the legislative branch, the head of the entity or 
the appointing official may waive the repayment if the individual 
involved possesses unique abilities and is the only qualified applicant 
available for the position. If the employment is with the judicial 
branch, the Director of the Administrative Office of the United States 
Courts may waive the repayment if the individual involved possesses 
unique abilities and is the only qualified applicant available for the 
position.
    ``(6) Under this program, early retirement and separation pay may 
be offered only pursuant to regulations established by the Secretary, 
subject to such limitations or conditions as the Secretary may require.
    ``(i) Provisions Relating to Reemployment.--If annuitant receiving 
an annuity from the Civil Service Retirement and Disability Fund 
becomes employed in a position within the Department of Defense, his 
annuity shall continue. An annuitant so reemployed shall not be 
considered an employee for purposes of chapter 83 or 84.
``Sec. 9903. Attracting highly qualified experts
    ``(a) In General.--The Secretary may carry out a program using the 
authority provided in subsection (b) in order to attract highly 
qualified experts in needed occupations, as determined by the 
Secretary.
    ``(b) Authority.--Under the program, the Secretary may--
            ``(1) appoint personnel from outside the civil service and 
        uniformed services (as such terms are defined in section 2101 
        of this title) to positions in the Department of Defense 
        without regard to any provision of this title governing the 
        appointment of employees to positions in the Department of 
        Defense;
            ``(2) prescribe the rates of basic pay for positions to 
        which employees are appointed under paragraph (1) at rates not 
        in excess of the maximum rate of basic pay authorized for 
        senior-level positions under section 5376 of this title, as 
        increased by locality-based comparability payments under 
        section 5304 of this title, notwithstanding any provision of 
        this title governing the rates of pay or classification of 
        employees in the executive branch; and
            ``(3) pay any employee appointed under paragraph (1) 
        payments in addition to basic pay within the limits applicable 
        to the employee under subsection (d).
    ``(c) Limitation on Term of Appointment.--(1) Except as provided in 
paragraph (2), the service of an employee under an appointment made 
pursuant to this section may not exceed 5 years.
    ``(2) The Secretary may, in the case of a particular employee, 
extend the period to which service is limited under paragraph (1) by up 
to 1 additional year if the Secretary determines that such action is 
necessary to promote the Department of Defense's national security 
missions.
    ``(d) Limitations on Additional Payments.--(1) The total amount of 
the additional payments paid to an employee under this section for any 
12-month period may not exceed the lesser of the following amounts:
            ``(A) $50,000 in fiscal year 2004, which may be adjusted 
        annually thereafter by the Secretary, with a percentage 
        increase equal to one-half of one percentage point less than 
        the percentage by which the Employment Cost Index, published 
        quarterly by the Bureau of Labor Statistics, for the base 
        quarter of the year before the preceding calendar year exceeds 
        the Employment Cost Index for the base quarter of the second 
        year before the preceding calendar year.
            ``(B) The amount equal to 50 percent of the employee's 
        annual rate of basic pay.
For purposes of this paragraph, the term `base quarter' has the meaning 
given such term by section 5302(3).
    ``(2) An employee appointed under this section is not eligible for 
any bonus, monetary award, or other monetary incentive for service 
except for payments authorized under this section.
    ``(3) Notwithstanding any other provision of this subsection or of 
section 5307, no additional payments may be paid to an employee under 
this section in any calendar year if, or to the extent that, the 
employee's total annual compensation will exceed the maximum amount of 
total annual compensation payable at the salary set in accordance with 
section 104 of title 3.
    ``(e) Savings Provisions.--In the event that the Secretary 
terminates this program, in the case of an employee who, on the day 
before the termination of the program, is serving in a position 
pursuant to an appointment under this section--
            ``(1) the termination of the program does not terminate the 
        employee's employment in that position before the expiration of 
        the lesser of--
                    ``(A) the period for which the employee was 
                appointed; or
                    ``(B) the period to which the employee's service is 
                limited under subsection (c), including any extension 
                made under this section before the termination of the 
                program; and
            ``(2) the rate of basic pay prescribed for the position 
        under this section may not be reduced as long as the employee 
        continues to serve in the position without a break in service.
``Sec. 9904. Employment of older Americans
    ``(a) In General.--Notwithstanding any other provision of law, the 
Secretary may appoint older Americans into positions in the excepted 
service for a period not to exceed 2 years, provided that--
            ``(1) any such appointment shall not result in--
                    ``(A) the displacement of individuals currently 
                employed by the Department of Defense (including 
                partial displacement through reduction of nonovertime 
                hours, wages, or employment benefits); or
                    ``(B) the employment of any individual when any 
                other person is in a reduction-in-force status from the 
                same or substantially equivalent job within the 
                Department of Defense; and
            ``(2) the individual to be appointed is otherwise qualified 
        for the position, as determined by the Secretary.
    ``(b) Effect on Existing Retirement Benefits.--Notwithstanding any 
other provision of law, an individual appointed pursuant to subsection 
(a) who otherwise is receiving an annuity, pension, social security 
payment, retired pay, or other similar payment shall not have the 
amount of said annuity, pension, social security, or other similar 
payment reduced as a result of such employment.
    ``(c) Extension of Appointment.--Notwithstanding subsection (a), 
the Secretary may extend an appointment made pursuant to this section 
for up to an additional 2 years if the individual employee possesses 
unique knowledge or abilities that are not otherwise available to the 
Department of Defense.
    ``(d) Definition.--For purposes of this section, the term `older 
American' means any citizen of the United States who is at least 55 
years of age.
``Sec. 9905. Special pay and benefits for certain employees outside the 
              United States
    ``The Secretary may provide to certain civilian employees of the 
Department of Defense assigned to activities outside the United States 
as determined by the Secretary to be in support of Department of 
Defense activities abroad hazardous to life or health or so specialized 
because of security requirements as to be clearly distinguishable from 
normal government employment--
            ``(1) allowances and benefits--
                    ``(A) comparable to those provided by the Secretary 
                of State to members of the Foreign Service under 
                chapter 9 of title I of the Foreign Service Act of 1980 
                (Public Law 96-465, 22 U.S.C. 4081 et seq.) or any 
                other provision of law; or
                    ``(B) comparable to those provided by the Director 
                of Central Intelligence to personnel of the Central 
                Intelligence Agency; and
            ``(2) special retirement accrual benefits and disability in 
        the same manner provided for by the Central Intelligence Agency 
        Retirement Act (50 U.S.C. 2001 et seq.) and in section 18 of 
        the Central Intelligence Agency Act of 1949 (50 U.S.C. 
        403r).''.
    (2) The table of chapters for part III of such title is amended by 
adding at the end of subpart I the following new item:

``99. Department of Defense National Security Personnel System.9901.''.
    (b) Impact on Department of Defense Civilian Personnel.--(1) Any 
exercise of authority under chapter 99 of such title (as added by 
subsection (a)), including under any system established under such 
chapter, shall be in conformance with the requirements of this 
subsection.
    (2) No other provision of this Act or of any amendment made by this 
Act may be construed or applied in a manner so as to limit, supersede, 
or otherwise affect the provisions of this section, except to the 
extent that it does so by specific reference to this section.
    (c) Conforming Amendments.--(1) Section 6 of the Civil Service 
Miscellaneous Amendments Act of 1983 (Public Law 98-224; 98 Stat. 49), 
as amended, is repealed.
    (2) Section 342 of the National Defense Authorization Act for 
Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2721), as amended, is 
repealed.
    (3) Section 1101 of the Strom Thurmond National Defense 
Authorization Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 
2139), as amended, is repealed.
    (4) Section 4308 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 669), as amended, is 
repealed.

           TITLE II--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL

SEC. 201. MODIFICATION OF THE OVERTIME PAY CAP.

    Section 5542(a)(2) of title 5, United States Code, is amended--
            (1) by inserting ``the greater of'' before ``one and one-
        half''; and
            (2) by inserting ``or the hourly rate of basic pay of the 
        employee'' after ``law)'' the second place it appears.

SEC. 202. CIVIL SERVICE RETIREMENT SYSTEM COMPUTATION FOR PART-TIME 
              SERVICE.

    Section 8339(p) of title 5, United States Code, is amended by 
adding at the end the following new paragraphs:
    ``(3) In the administration of paragraph (1)--
            ``(A) subparagraph (A) of such paragraph shall apply with 
        respect to pay for service performed before, on, or after April 
        7, 1986; and
            ``(B) subparagraph (B) of such paragraph--
                    ``(i) shall apply with respect to that portion of 
                any annuity which is attributable to service performed 
                on or after April 7, 1986; and
                    ``(ii) shall not apply with respect to that portion 
                of any annuity which is attributable to service 
                performed before April 7, 1986.
    ``(4) Paragraph (3) shall be effective with respect to any annuity 
entitlement to which is based on a separation from service occurring on 
or after the date of the enactment of this paragraph.''.

SEC. 203. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN EMPLOYEES.

    (a) In General.--Subsection (b) of section 6323 of title 5, United 
States Code, is amended--
            (1) in paragraph (2)--
                    (A) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively, and at the end of 
                clause (ii), as so redesignated, by inserting ``or''; 
                and
                    (B) by inserting ``(A)'' after ``(2)''; and
            (2) by inserting the following before the text beginning 
        with ``is entitled'':
            ``(B) performs full-time military service as a result of a 
        call or order to active duty in support of a contingency 
        operation as defined in section 101(a)(13) of title 10;''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to military service performed on or after the date of the 
enactment of this Act.

SEC. 204. COMMON OCCUPATIONAL AND HEALTH STANDARDS FOR DIFFERENTIAL 
              PAYMENTS AS A CONSEQUENCE OF EXPOSURE TO ASBESTOS.

    (a) Prevailing Rate Systems.--Section 5343(c)(4) of title 5, United 
States Code, is amended by inserting before the semicolon at the end 
the following: ``, and for any hardship or hazard related to asbestos, 
such differentials shall be determined by applying occupational safety 
and health standards consistent with the permissible exposure limit 
promulgated by the Secretary of Labor under the Occupational Safety and 
Health Act of 1970''.
    (b) General Schedule Pay Rates.--Section 5545(d) of such title is 
amended by inserting before the period at the end of the first sentence 
the following: ``, and for any hardship or hazard related to asbestos, 
such differentials shall be determined by applying occupational safety 
and health standards consistent with the permissible exposure limit 
promulgated by the Secretary of Labor under the Occupational Safety and 
Health Act of 1970''.
    (c) Applicability.--Subject to any vested constitutional property 
rights, any administrative or judicial determination after the date of 
enactment of this Act concerning backpay for a differential established 
under sections 5343(c)(4) or 5545(d) of such title shall be based on 
occupational safety and health standards described in the amendments 
made by subsections (a) and (b).

SEC. 205. INCREASE IN ANNUAL STUDENT LOAN REPAYMENT AUTHORITY.

    Section 5379(b)(2)(A) of title 5, United States Code, is amended by 
striking ``$6,000'' and inserting ``$10,000''.

SEC. 206. AUTHORIZATION FOR CABINET SECRETARIES, SECRETARIES OF 
              MILITARY DEPARTMENTS, AND HEADS OF EXECUTIVE AGENCIES TO 
              BE PAID ON A BIWEEKLY BASIS.

    (a) Authorization.--Section 5504 of title 5, United States Code, is 
amended--
            (1) by redesignating subsection (c) as subsection (d);
            (2) by striking the last sentence of both subsection (a) 
        and subsection (b); and
            (3) by inserting after subsection (b) the following:
    ``(c) For the purposes of this section:
            ``(1) The term `employee' means--
                    ``(A) an employee in or under an Executive agency;
                    ``(B) an employee in or under the Office of the 
                Architect of the Capitol, the Botanic Garden, and the 
                Library of Congress, for whom a basic administrative 
                workweek is established under section 6101(a)(5) of 
                this title; and
                    ``(C) an individual employed by the government of 
                the District of Columbia.
            ``(2) The term `employee' does not include--
                    ``(A) an employee on the Isthmus of Panama in the 
                service of the Panama Canal Commission; or
                    ``(B) an employee or individual excluded from the 
                definition of employee in section 5541(2) of this title 
                other than an employee or individual excluded by 
                clauses (ii), (iii), and (xiv) through (xvii) of such 
                section.
            ``(3) Notwithstanding paragraph (2), an individual who 
        otherwise would be excluded from the definition of employee 
        shall be deemed to be an employee for purposes of this section 
        if the individual's employing agency so elects, under 
        guidelines in regulations promulgated by the Office of 
        Personnel Management under subsection (d)(2).''.
    (b) Guidelines.--Subsection (d) of section 5504 of such title, as 
redesignated by subsection (a), is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Office of Personnel Management shall provide guidelines 
by regulation for exemptions to be made by the heads of agencies under 
subsection (c)(3). Such guidelines shall provide for such exemptions 
only under exceptional circumstances.''.

SEC. 207. ADDITIONAL CLASSES OF INDIVIDUALS ELIGIBLE TO PARTICIPATE IN 
              THE FEDERAL LONG-TERM CARE INSURANCE PROGRAM.

    (a) Certain Employees of the District of Columbia Government.--
Section 9001(1) of title 5, United States Code, is amended by striking 
``2105(c),'' and all that follows and inserting ``2105(c).''.
    (b) Former Federal Employees Who Would Be Eligible To Begin 
Receiving an Annuity Upon Attaining the Requisite Minimum Age.--Section 
9001(2) of title 5, United States Code, is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(C) any former employee who, on the basis of his 
                or her service, would meet all requirements for being 
                considered an `annuitant' within the meaning of 
                subchapter III of chapter 83, chapter 84, or any other 
                retirement system for employees of the Government, but 
                for the fact that such former employee has not attained 
                the minimum age for title to annuity.''.
    (c) Reservists Transferred to the Retired Reserve Who Are Under Age 
60.--Section 9001(4) of title 5, United States Code, is amended by 
striking ``including'' and all that follows through ``who has'' and 
inserting ``and a member who has been transferred to the Retired 
Reserve and who would be entitled to retired pay under chapter 1223 of 
title 10 but for not having''.

     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.

    Subchapter I of chapter 31 of title 5, United States Code, is 
amended by adding at the end the following:
``Sec. 3114. APPOINTMENT OF ACCOUNTANTS, ECONOMISTS, AND EXAMINERS BY 
              THE SECURITIES AND EXCHANGE COMMISSION.
    ``(a) Applicability.--This section applies with respect to any 
position of accountant, economist, and securities compliance examiner 
at the Commission that is in the competitive service.
    ``(b) Appointment Authority.--
            ``(1) In general.--The Commission may appoint candidates to 
        any position described in subsection (a)--
                    ``(A) in accordance with the statutes, rules, and 
                regulations governing appointments in the excepted 
                service; and
                    ``(B) notwithstanding any statutes, rules, and 
                regulations governing appointments in the competitive 
                service.
            ``(2) Rule of construction.--The appointment of a candidate 
        to a position under authority of this subsection shall not be 
        considered to cause such position to be converted from the 
        competitive service to the excepted service.
    ``(c) Reports.--No later than 90 days after the end of fiscal year 
2003 (for fiscal year 2003) and 90 days after the end of fiscal year 
2005 (for fiscal years 2004 and 2005), the Commission shall submit a 
report with respect to its exercise of the authority granted by 
subsection (b) during such fiscal years to the Committee on Government 
Reform and the Committee on Financial Services of the House of 
Representatives and the Committee on Governmental Affairs and the 
Committee on Banking, Housing, and Urban Affairs of the Senate. Such 
reports shall describe the changes in the hiring process authorized by 
such subsection, including relevant information related to--
            ``(1) the quality of candidates;
            ``(2) the procedures used by the Commission to select 
        candidates through the streamlined hiring process;
            ``(3) the numbers, types, and grades of employees hired 
        under the authority;
            ``(4) any benefits or shortcomings associated with the use 
        of the authority;
            ``(5) the effect of the exercise of the authority on the 
        hiring of veterans and other demographic groups; and
            ``(6) the way in which managers were trained in the 
        administration of the streamlined hiring system.
    ``(c) Commission Defined.--For purposes of this section, the term 
`Commission' means the Security and Exchange Commission.''.

       Subtitle B--National Aeronautics and Space Administration

SEC. 311. WORKFORCE AUTHORITIES AND PERSONNEL PROVISIONS.

    (a) In General.--Subpart I of part III of title 5, United States 
Code, is amended by inserting after chapter 97, as added by section 
841(a)(2) of the Homeland Security Act of 2002 (Public Law 107-296; 116 
Stat. 2229), the following:

      ``CHAPTER 98--NATIONAL AERONAUTICS 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.

                 ``SUBCHAPTER I--WORKFORCE AUTHORITIES

``Sec. 9801. Definitions
    ``For purposes of this subchapter--
            ``(1) the term `Administration' means the National 
        Aeronautics and Space Administration;
            ``(2) the term `Administrator' means the Administrator of 
        the National Aeronautics and Space Administration;
            ``(3) the term `critical need' means a specific and 
        important requirement of the Administration's mission that the 
        Administration is unable to fulfill because the Administration 
        lacks the appropriate employees because--
                    ``(A) of the inability to fill positions; or
                    ``(B) employees do not possess the requisite 
                skills;
            ``(4) the term `employee' means an individual employed in 
        or under the Administration; and
            ``(5) the term `workforce plan' means the plan required 
        under section 9802(a).
``Sec. 9802. Planning, notification, and reporting requirements
    ``(a) Before exercising any of the workforce authorities under this 
subchapter, the Administrator shall submit a written plan to the Office 
of Personnel Management for approval. A plan under this subchapter may 
not be implemented without the approval of the Office of Personnel 
Management.
    ``(b) A workforce plan shall include a description of--
            ``(1) each critical need of the Administration and the 
        criteria used in the identification of that need;
            ``(2)(A) the functions, approximate number, and classes or 
        other categories of positions or employees that--
                    ``(i) address critical needs; and
                    ``(ii) would be eligible for each authority 
                proposed to be exercised under section 9803; and
            ``(B) how the exercise of those authorities with respect to 
        the eligible positions or employees involved would address each 
        critical need identified under paragraph (1);
            ``(3)(A) any critical need identified under paragraph (1) 
        which would not be addressed by the authorities made available 
        under section 9803; and
            ``(B) the reasons why those needs would not be so 
        addressed;
            ``(4) the specific criteria to be used in determining which 
        individuals may receive the benefits described under sections 
        9804 and 9805 (including the criteria for granting bonuses in 
        the absence of a critical need), and how the level of those 
        benefits will be determined;
            ``(5) the safeguards or other measures that will be applied 
        to ensure that this subchapter is carried out in a manner 
        consistent with merit system principles;
            ``(6) the means by which employees will be afforded the 
        notification required under subsections (c) and (d)(1)(B);
            ``(7) the methods that will be used to determine if the 
        authorities exercised under section 9803 have successfully 
        addressed each critical need identified under paragraph (1); 
        and
            ``(8)(A) the recruitment methods used by the Administration 
        before the enactment of this chapter to recruit highly 
        qualified individuals; and
            ``(B) the changes the Administration will implement after 
        the enactment of this chapter in order to improve its 
        recruitment of highly qualified individuals, including how it 
        intends to use--
                    ``(i) nongovernmental recruitment or placement 
                agencies; and
                    ``(ii) Internet technologies.
    ``(c) Not later than 60 days before first exercising any of the 
workforce authorities made available under this subchapter, the 
Administrator shall provide to all employees the workforce plan and any 
additional information which the Administrator considers appropriate.
    ``(d)(1)(A) The Administrator may submit any modifications to the 
workforce plan to the Office of Personnel Management. Modifications to 
the workforce plan may not be implemented without the approval of the 
Office of Personnel Management.
    ``(B) Not later than 60 days before implementing any such 
modifications, the Administrator shall provide an appropriately 
modified plan to all employees of the Administration.
    ``(2) Any reference in this subchapter or any other provision of 
law to the workforce plan shall be considered to include any 
modification made in accordance with this subsection.
    ``(e) None of the workforce authorities made available under 
section 9803 may be exercised in a manner inconsistent with the 
workforce plan.
    ``(f) Whenever the Administration submits its performance plan 
under section 1115 of title 31 to the Office of Management and Budget 
for any year, the Administration shall at the same time submit a copy 
of such plan to--
            ``(1) the Committee on Governmental Affairs and the 
        Committee on Appropriations of the Senate; and
            ``(2) the Committee on Government Reform and the Committee 
        on Appropriations of the House of Representatives.
``Sec. 9803. Workforce authorities
    ``(a) The workforce authorities under this subchapter are the 
following:
            ``(1) The authority to pay recruitment, redesignation, and 
        relocation bonuses under section 9804.
            ``(2) The authority to pay retention bonuses under section 
        9805.
            ``(3) The authority to make term appointments and to take 
        related personnel actions under section 9806.
            ``(4) The authority to fix rates of basic pay for critical 
        positions under section 9807.
            ``(5) The authority to extend intergovernmental personnel 
        act assignments under section 9808.
    ``(b) No authority under this subchapter may be exercised with 
respect to any officer who is appointed by the President, by and with 
the advice and consent of the Senate.
    ``(c) Unless specifically stated otherwise, all authorities 
provided under this subchapter are subject to section 5307.
``Sec. 9804. Recruitment, redesignation, and relocation bonuses
    ``(a) Notwithstanding section 5753, the Administrator may pay a 
bonus to an individual, in accordance with the workforce plan and 
subject to the limitations in this section, if--
            ``(1) the Administrator determines that the Administration 
        would be likely, in the absence of a bonus, to encounter 
        difficulty in filling a position; and
            ``(2) the individual--
                    ``(A) is newly appointed as an employee of the 
                Federal Government;
                    ``(B) is currently employed by the Federal 
                Government and is newly appointed to another position 
                in the same geographic area; or
                    ``(C) is currently employed by the Federal 
                Government and is required to relocate to a different 
                geographic area to accept a position with the 
                Administration.
    ``(b) If the position is described as addressing a critical need in 
the workforce plan under section 9802(b)(2)(A), the amount of a bonus 
may not exceed--
            ``(1) 50 percent of the employee's annual rate of basic pay 
        (including comparability payments under sections 5304 and 
        5304a) as of the beginning of the service period multiplied by 
        the service period specified under subsection (d)(1)(B)(i); or
            ``(2) 100 percent of the employee's annual rate of basic 
        pay (including comparability payments under sections 5304 and 
        5304a) as of the beginning of the service period.
    ``(c) If the position is not described as addressing a critical 
need in the workforce plan under section 9802(b)(2)(A), the amount of a 
bonus may not exceed--
            ``(1) 25 percent of the employee's annual rate of basic pay 
        (including comparability payments under sections 5304 and 
        5304a) as of the beginning of the service period multiplied by 
        the service period specified under subsection (d)(1)(B)(i); or
            ``(2) 100 percent of the employee's annual rate of basic 
        pay (including comparability payments under sections 5304 and 
        5304a) as of the beginning of the service period.
    ``(d)(1)(A) Payment of a bonus under this section shall be 
contingent upon the individual entering into a service agreement with 
the Administration.
    ``(B) At a minimum, the service agreement shall include--
            ``(i) the required service period;
            ``(ii) the method of payment, including a payment schedule, 
        which may include a lump-sum payment, installment payments, or 
        a combination thereof;
            ``(iii) the amount of the bonus and the basis for 
        calculating that amount; and
            ``(iv) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed, and the effect of the termination.
    ``(2) For purposes of determinations under subsections (b)(1) and 
(c)(1), the employee's service period shall be expressed as the number 
equal to the full years and twelfth parts thereof, rounding the 
fractional part of a month to the nearest twelfth part of a year. The 
service period may not be less than 6 months and may not exceed 4 
years.
    ``(3) A bonus under this section may not be considered to be part 
of the basic pay of an employee.
    ``(e) Before paying a bonus under this section, the Administration 
shall establish a plan for paying recruitment, redesignation, and 
relocation bonuses, subject to approval by the Office of Personnel 
Management.
``Sec. 9805. Retention bonuses
    ``(a) Notwithstanding section 5754, the Administrator may pay a 
bonus to an employee, in accordance with the workforce plan and subject 
to the limitations in this section, if the Administrator determines 
that--
            ``(1) the unusually high or unique qualifications of the 
        employee or a special need of the Administration for the 
        employee's services makes it essential to retain the employee; 
        and
            ``(2) the employee would be likely to leave in the absence 
        of a retention bonus.
    ``(b) If the position is described as addressing a critical need in 
the workforce plan under section 9802(b)(2)(A), the amount of a bonus 
may not exceed 50 percent of the employee's annual rate of basic pay 
(including comparability payments under sections 5304 and 5304a).
    ``(c) If the position is not described as addressing a critical 
need in the workforce plan under section 9802(b)(2)(A), the amount of a 
bonus may not exceed 25 percent of the employee's annual rate of basic 
pay (including comparability payments under sections 5304 and 5304a).
    ``(d)(1)(A) Payment of a bonus under this section shall be 
contingent upon the employee entering into a service agreement with the 
Administration.
    ``(B) At a minimum, the service agreement shall include--
            ``(i) the required service period;
            ``(ii) the method of payment, including a payment schedule, 
        which may include a lump-sum payment, installment payments, or 
        a combination thereof;
            ``(iii) the amount of the bonus and the basis for 
        calculating the amount; and
            ``(iv) the conditions under which the agreement may be 
        terminated before the agreed-upon service period has been 
        completed, and the effect of the termination.
    ``(2) The employee's service period shall be expressed as the 
number equal to the full years and twelfth parts thereof, rounding the 
fractional part of a month to the nearest twelfth part of a year. The 
service period may not be less than 6 months and may not exceed 4 
years.
    ``(3) Notwithstanding paragraph (1), a service agreement is not 
required if the Administration pays a bonus in biweekly installments 
and sets the installment payment at the full bonus percentage rate 
established for the employee, with no portion of the bonus deferred. In 
this case, the Administration shall inform the employee in writing of 
any decision to change the retention bonus payments. The employee shall 
continue to accrue entitlement to the retention bonus through the end 
of the pay period in which such written notice is provided.
    ``(e) A bonus under this section may not be considered to be part 
of the basic pay of an employee.
    ``(f) An employee is not entitled to a retention bonus under this 
section during a service period previously established for that 
employee under section 5753 or under section 9804.
``Sec. 9806. Term appointments
    ``(a) The Administrator may authorize term appointments within the 
Administration under subchapter I of chapter 33, for a period of not 
less than 1 year and not more than 6 years.
    ``(b) Notwithstanding chapter 33 or any other provision of law 
relating to the examination, certification, and appointment of 
individuals in the competitive service, the Administrator may convert 
an employee serving under a term appointment to a permanent appointment 
in the competitive service within the Administration without further 
competition if--
            ``(1) such individual was appointed under open, competitive 
        examination under subchapter I of chapter 33 to the term 
        position;
            ``(2) the announcement for the term appointment from which 
        the conversion is made stated that there was potential for 
        subsequent conversion to a career-conditional or career 
        appointment;
            ``(3) the employee has completed at least 2 years of 
        current continuous service under a term appointment in the 
        competitive service;
            ``(4) the employee's performance under such term 
        appointment was at least fully successful or equivalent; and
            ``(5) the position to which such employee is being 
        converted under this section is in the same occupational 
        series, is in the same geographic location, and provides no 
        greater promotion potential than the term position for which 
        the competitive examination was conducted.
    ``(c) Notwithstanding chapter 33 or any other provision of law 
relating to the examination, certification, and appointment of 
individuals in the competitive service, the Administrator may convert 
an employee serving under a term appointment to a permanent appointment 
in the competitive service within the Administration through internal 
competitive promotion procedures if the conditions under paragraphs (1) 
through (4) of subsection (b) are met.
    ``(d) An employee converted under this section becomes a career-
conditional employee, unless the employee has otherwise completed the 
service requirements for career tenure.
    ``(e) An employee converted to career or career-conditional 
employment under this section acquires competitive status upon 
conversion.
``Sec. 9807. Pay authority for critical positions
    ``(a) In this section, the term `position' means--
            ``(1) a position to which chapter 51 applies, including a 
        position in the Senior Executive Service;
            ``(2) a position under the Executive Schedule under 
        sections 5312 through 5317;
            ``(3) a position established under section 3104; or
            ``(4) a senior-level position to which section 5376(a)(1) 
        applies.
    ``(b) Authority under this section--
            ``(1) may be exercised only with respect to a position 
        that--
                    ``(A) is described as addressing a critical need in 
                the workforce plan under section 9802(b)(2)(A); and
                    ``(B) requires expertise of an extremely high level 
                in a scientific, technical, professional, or 
                administrative field;
            ``(2) may be exercised only to the extent necessary to 
        recruit or retain an individual exceptionally well qualified 
        for the position; and
            ``(3) may be exercised only in retaining employees of the 
        Administration or in appointing individuals who were not 
        employees of another Federal agency as defined under section 
        5102(a)(1).
    ``(c)(1) Notwithstanding section 5377, the Administrator may fix 
the rate of basic pay for a position in the Administration in 
accordance with this section. The Administrator may not delegate this 
authority.
    ``(2) The number of positions with pay fixed under this section may 
not exceed 10 at any time.
    ``(d)(1) The rate of basic pay fixed under this section may not be 
less than the rate of basic pay (including any comparability payments) 
which would otherwise be payable for the position involved if this 
section had never been enacted.
    ``(2) The annual rate of basic pay fixed under this section may not 
exceed the per annum rate of salary payable under section 104 of title 
3.
    ``(3) Notwithstanding any provision of section 5307, in the case of 
an employee who, during any calendar year, is receiving pay at a rate 
fixed under this section, no allowance, differential, bonus, award, or 
similar cash payment may be paid to such employee if, or to the extent 
that, when added to basic pay paid or payable to such employee (for 
service performed in such calendar year as an employee in the executive 
branch or as an employee outside the executive branch to whom chapter 
51 applies), such payment would cause the total to exceed the per annum 
rate of salary which, as of the end of such calendar year, is payable 
under section 104 of title 3.
``Sec. 9808. Assignments of intergovernmental personnel
    ``For purposes of applying the third sentence of section 3372(a) 
(relating to the authority of the head of a Federal agency to extend 
the period of an employee's assignment to or from a State or local 
government, institution of higher education, or other organization), 
the Administrator may, with the concurrence of the employee and the 
government or organization concerned, take any action which would be 
allowable if such sentence had been amended by striking `two' and 
inserting `four'.
``Sec. 9809. Enhanced demonstration project authority
    ``When conducting a demonstration project at the Administration, 
section 4703(d)(1)(A) may be applied by substituting `such numbers of 
individuals as determined by the Administrator' for `not more than 
5,000 individuals'.

                 ``SUBCHAPTER II--PERSONNEL PROVISIONS

``Sec. 9831. Definitions
    ``For purposes of this subchapter--
            ``(1) the term `Administration' means the National 
        Aeronautics and Space Administration; and
            ``(2) the term `Administrator' means the Administrator of 
        the National Aeronautics and Space Administration.
``Sec. 9832. Administration and private sector exchange assignments
    ``(a) For purposes of this section--
            ``(1) the term `private sector employee' means an employee 
        of a private sector entity; and
            ``(2) the term `private sector entity' means an 
        organization, company, corporation, or other business concern, 
        or a foreign government or agency of a foreign government, that 
        is not a State, local government, Federal agency, or other 
        organization as defined under section 3371 (1), (2), (3), and 
        (4), respectively.
    ``(b)(1) On request from or with the concurrence of a private 
sector entity, and with the consent of the employee concerned, the 
Administrator may arrange for the assignment of--
            ``(A) an employee of the Administration serving under a 
        career or career-conditional appointment, a career appointee in 
        the Senior Executive Service, or an individual under an 
        appointment of equivalent tenure in an excepted service 
        position, but excluding employees in positions which have been 
        excepted from the competitive service by reasons of their 
        confidential, policy-determining, policymaking, or policy-
        advocating character, to a private sector entity; and
            ``(B) an employee of a private sector entity to the 
        Administration,
for work of mutual concern to the Administration and the private sector 
entity that the Administrator determines will be beneficial to both.
    ``(2) The period of an assignment under this section may not exceed 
2 years. However, the Administrator may extend the period of assignment 
for not more than 2 additional years.
    ``(3) An employee of the Administration may be assigned under this 
section only if the employee agrees, as a condition of accepting an 
assignment, to serve in the Administration upon the completion of the 
assignment for a period equal to the length of the assignment. The 
Administrator may waive the requirement under this paragraph, with the 
approval of the Office of Management and Budget, with respect to any 
employee if the Administrator determines it to be in the best interests 
of the United States to do so.
    ``(4) Each agreement required under paragraph (3) shall provide 
that if the employee fails to carry out the agreement (except in the 
case of a waiver made under paragraph (3)), the employee shall be 
liable to the United States for payment of all expenses (excluding 
salary) of the assignment. The amount due shall be treated as a debt 
due the United States.
    ``(c)(1) An Administration employee assigned to a private sector 
entity under this section is deemed, during the assignment, to be on 
detail to a work assignment (as a detailee to the entity).
    ``(2) An Administration employee assigned under this section on 
detail remains an employee of the Administration. Chapter 171 of title 
28 and any other Federal tort liability statute apply to the 
Administration employee so assigned, and all defenses available to the 
United States under these laws or applicable provisions of State law 
shall remain in effect. The supervision of the duties of an 
Administration employee assigned to the private sector entity through 
detail may be governed by agreement between the Administration and the 
private sector entity concerned.
    ``(3) The assignment of an Administration employee on detail to a 
private sector entity under this section may be made with or without 
reimbursement by the private sector entity for the travel and 
transportation expenses to or from the place of assignment, for the 
pay, or supplemental pay, or a part thereof, of the employee, or for 
the contribution of the Administration to the employee's benefit 
systems during the assignment. Any reimbursements shall be credited to 
the appropriation of the Administration used for paying the travel and 
transportation expenses, pay, or benefits, and not paid to the 
employee.
    ``(d)(1) An employee of a private sector entity who is assigned to 
the Administration under an arrangement under this section shall be 
deemed on detail to the Administration.
    ``(2) During the period of assignment, a private sector employee on 
detail to the Administration--
            ``(A) is not entitled to pay from the Administration, 
        except to the extent that the pay received from the private 
        sector entity is less than the appropriate rate of pay which 
        the duties would warrant under the pay provisions of this title 
        or other applicable authority;
            ``(B) is deemed an employee of the Administration for the 
        purpose of chapter 73 of this title, the Ethics in Government 
        Act of 1978, section 27 of the Office of Federal Procurement 
        Policy Act, sections 201, 203, 205, 207, 208, 209, 602, 603, 
        606, 607, 610, 643, 654, 1905, and 1913 of title 18, sections 
        1343, 1344, and 1349(b) of title 31, chapter 171 of title 28, 
        and any other Federal tort liability statute, and any other 
        provision of Federal criminal law, unless otherwise 
        specifically exempted;
            ``(C) notwithstanding subparagraph (B), is also deemed to 
        be an employee of his or her private sector employer for 
        purposes of section 208 of title 18; and
            ``(D) is subject to such regulations as the Administrator 
        may prescribe.
    ``(3) The supervision of the duties of an employee assigned under 
this subsection may be governed by agreement between the Administration 
and the private sector entity.
    ``(4) A detail of a private sector employee to the Administration 
may be made with or without reimbursement by the Administration for the 
pay, or a part thereof, of the employee during the period of 
assignment, or for the contribution of the private sector entity, or a 
part thereof, to employee benefit systems.
    ``(5)(A) A private sector employee on detail to the Administration 
under this section who suffers disability or dies as a result of 
personal injury sustained while in the performance of duties during the 
assignment shall be treated, for the purpose of subchapter I of chapter 
81, as an employee as defined under section 8101 who had sustained the 
injury in the performance of duties.
    ``(B) When an employee (or the employee's dependents in case of 
death) entitled by reason of injury or death to benefits under 
subchapter I of chapter 81 is also entitled to benefits from the 
employee's private sector employer for the same injury or death, the 
employee (or the employee's dependents in case of death) shall elect 
which benefits the employee will receive. The election shall be made 
within 1 year after the injury or death, or such further time as the 
Secretary of Labor may allow for reasonable cause shown. When made, the 
election is irrevocable.
    ``(C) Except as provided in subparagraphs (A) and (B), and 
notwithstanding any other law, the United States, any instrumentality 
of the United States, or an employee, agent, or assign of the United 
States shall not be liable to--
            ``(i) a private sector employee assigned to the 
        Administration under this section;
            ``(ii) such employee's legal representative, spouse, 
        dependents, survivors, or next of kin; or
            ``(iii) any other person, including any third party as to 
        whom such employee, or that employee's legal representative, 
        spouse, dependents, survivors, or next of kin, has a cause of 
        action arising out of an injury or death sustained in the 
        performance of duty pursuant to an assignment under this 
        section, otherwise entitled to recover damages from the United 
        States, any instrumentality of the United States, or any 
        employee, agency, or assign of the United States,
with respect to any injury or death suffered by a private sector 
employee sustained in the performance of duties pursuant to an 
assignment under this section.
    ``(e)(1) Appropriations of the Administration are available to pay, 
or reimburse, an Administration or private sector employee in 
accordance with--
            ``(A) subchapter I of chapter 57 for the expenses of--
                    ``(i) travel, including a per diem allowance, to 
                and from the assignment location;
                    ``(ii) a per diem allowance at the assignment 
                location during the period of the assignment; and
                    ``(iii) travel, including a per diem allowance, 
                while traveling on official business away from the 
                employee's designated post of duty during the 
                assignment when the Administrator considers the travel 
                to be in the interest of the United States;
            ``(B) section 5724 for the expenses of transportation of 
        the employee's immediate family, household goods, and personal 
        effects to and from the assignment location;
            ``(C) section 5724a(a) for the expenses of per diem 
        allowances for the immediate family of the employee to and from 
        the assignment location;
            ``(D) section 5724a(c) for subsistence expenses of the 
        employee and immediate family while occupying temporary 
        quarters at the assignment location and on return to the 
        employee's former post of duty;
            ``(E) section 5724a(g) to be used by the employee for 
        miscellaneous expenses related to change of station where 
        movement or storage of household goods is involved; and
            ``(F) section 5726(c) for the expenses of nontemporary 
        storage of household goods and personal effects in connection 
        with assignment at an isolated location.
    ``(2) Expenses specified in paragraph (1), other than those in 
paragraph (1)(A)(iii), may not be allowed in connection with the 
assignment of an Administration or private sector employee under this 
section, unless and until the employee agrees in writing to complete 
the entire period of his assignment or 1 year, whichever is shorter, 
unless separated or reassigned for reasons beyond his control that are 
acceptable to the Administrator. If the employee violates the 
agreement, the money spent by the United States for these expenses is 
recoverable from the employee as a debt due the United States. The 
Administrator may waive in whole or in part a right of recovery under 
this paragraph with respect to a private sector employee on assignment 
with the Administration or an Administration employee on assignment 
with a private sector entity.
    ``(3) Appropriations of the Administration are available to pay 
expenses under section 5742 with respect to an Administration or 
private sector employee assigned under this authority.
    ``(f) A private sector entity may not charge the Federal 
Government, as direct or indirect costs under a Federal contract, the 
costs of pay or benefits paid by the entity to an employee assigned to 
the Administration under this section for the period of the assignment.
``Sec. 9833. Science and technology scholarship program
    ``(a)(1) The Administrator may carry out a program of entering into 
contractual agreements with individuals described under paragraph (2) 
under which--
            ``(A) the Administrator agrees to provide to the 
        individuals scholarships for pursuing, at accredited 
        institutions of higher education, academic programs appropriate 
        for careers in professions needed by the Administration; and
            ``(B) the individuals agree to serve as employees of the 
        Administration, for the period described under subsection (b), 
        in positions needed by the Administration and for which the 
        individuals are qualified.
    ``(2) The individuals referred to under paragraph (1) are 
individuals who--
            ``(A) are enrolled or accepted for enrollment as full-time 
        students at accredited institutions of higher education in an 
        academic field or discipline prescribed by the Administration;
            ``(B) are United States citizens; and
            ``(C) at the time of the initial scholarship award, are not 
        Federal employees as defined under section 2105.
    ``(b)(1) For purposes of subsection (a)(1)(B), the period of 
service for which an individual is obligated to serve as an employee of 
the Administration is, subject to subparagraph (A) of paragraph (2), 12 
months for each academic year for which the scholarship under such 
subsection is provided.
    ``(2)(A) Subject to subparagraph (B), the Administrator may provide 
a scholarship under this section if the individual applying for the 
scholarship agrees that, not later than 60 days after obtaining the 
educational degree involved, the individual will begin serving full-
time as an employee in satisfaction of the period of service that the 
individual is obligated to provide.
    ``(B) The Administrator may defer the obligation of an individual 
to provide a period of service under this subsection, if the 
Administrator determines that such a deferral is appropriate.
    ``(c)(1) The Administrator may provide a scholarship under 
subsection (a) for an academic year if--
            ``(A) the individual applying for the scholarship has 
        submitted to the Administrator a proposed academic program 
        leading to a degree in an academic field or discipline approved 
        by the Administration; or
            ``(B) the individual agrees that the program will not be 
        altered without the approval of the Administrator.
    ``(2) The Administrator may provide a scholarship under this 
section for an academic year if the individual applying for the 
scholarship agrees to maintain a high level of academic standing as 
defined by regulation.
    ``(3) The dollar amount of a scholarship for an academic year shall 
not exceed--
            ``(A) the limits established by regulation under paragraph 
        (4); or
            ``(B) the total costs incurred in attending the institution 
        involved.
    ``(4) A scholarship may be expended for tuition, fees, and other 
authorized expenses as established by regulation.
    ``(5) The Administrator may enter into a contractual agreement with 
an institution of higher education under which the amounts provided in 
the scholarship for tuition, fees, and other authorized expenses are 
paid directly to the institution with respect to which a scholarship is 
provided.
    ``(6) An individual may not receive a scholarship for longer than 4 
academic years, unless an extension is granted by the Administrator.
    ``(d)(1)(A) Any scholarship recipient who fails to maintain a high 
level of academic standing, who is dismissed from an educational 
institution for disciplinary reasons, or who voluntarily terminates 
academic training before graduation from the educational program for 
which the scholarship was awarded, shall--
            ``(i) be in breach of the contractual agreement; and
            ``(ii) in lieu of any service obligation arising under such 
        agreement, be liable to the United States for repayment of all 
        scholarship funds paid to that recipient and to the educational 
        institution on their behalf under the agreement within 1 year 
        after the date of default.
    ``(B) The repayment period may be extended by the Administrator 
when determined to be necessary, as established by regulation. A 
penalty for failure to complete the academic program for which the 
scholarship was awarded may be assessed at the discretion of the 
Administrator, in addition to the repayment with interest as provided 
under paragraph (3).
    ``(2)(A) A scholarship recipient who, for any reason, fails to 
begin or complete that recipient's service obligation after completion 
of academic training, or fails to comply with the terms and conditions 
of deferment established by the Administrator, shall be in breach of 
the contractual agreement.
    ``(B)(i) In this subparagraph--
            ``(I) the term `A' means the amount the United States is 
        entitled to recover;
            ``(II) the term `F' means the sum of the amounts paid to or 
        on behalf of the participant;
            ``(III) the term `t' means the total number of months of 
        the period of obligated service the participant is required to 
        serve; and
            ``(IV) the term `s' means the number of months of the 
        period of obligated service served by the participant.
    ``(ii) When a recipient breaches the agreement as provided under 
subparagraph (A), the United States shall be entitled to recover 
damages equal to 3 times the scholarship award, in accordance with the 
following formula:
                                    ``A=(3F)[(t-s)/t]
    ``(C) The damages that the United States is entitled to recover 
shall be paid within 1 year after the date of default.
    ``(3) Beginning 90 days after default, interest shall accrue on the 
payments required to be made under this subsection, at a rate to be 
determined by regulation established by the Administrator.
    ``(e)(1) Any obligation of an individual incurred under this 
section for service or payment of damages may be canceled upon the 
death of the individual.
    ``(2) The Administrator shall by regulation provide for the partial 
or total waiver or suspension of any obligation of service or payment 
incurred by an individual under this section if--
            ``(A) the compliance by the individual is impossible or 
        would involve extreme hardship to the individual; or
            ``(B) enforcement of such obligation with respect to any 
        individual would be contrary to the best interests of the 
        Government.
    ``(f) The Administrator may provide a scholarship under this 
section if an application for the scholarship is submitted to the 
Administrator and the application is in such form, is made in such 
manner, and contains such agreements, assurance, and information as the 
Administrator determines to be necessary to carry out this section.
    ``(g)(1) There are authorized to be appropriated to the 
Administration to carry out this section $10,000,000 for fiscal year 
2004 and $10,000,000 for each succeeding fiscal year.
    ``(2) Amounts appropriated for a fiscal year for scholarships under 
this section shall remain available for 2 fiscal years.
``Sec. 9834. Distinguished scholar appointment authority
    ``(a) In this section--
            ``(1) the term `professional position' means a position 
        that is classified to an occupational series identified by the 
        Office of Personnel Management as a position that--
                    ``(A) requires education and training in the 
                principles, concepts, and theories of the occupation 
                that typically can be gained only through completion of 
                a specified curriculum at a recognized college or 
                university; and
                    ``(B) is covered by the Group Coverage 
                Qualification Standard for Professional and Scientific 
                Positions; and
            ``(2) the term `research position' means a position in a 
        professional series that primarily involves scientific inquiry 
        or investigation, or research-type exploratory development of a 
        creative or scientific nature, where the knowledge required to 
        perform the work successfully is acquired typically and 
        primarily through graduate study.
    ``(b) The Administration may appoint, without regard to the 
provisions of sections 3304(b) and 3309 through 3318, candidates 
directly to General Schedule professional positions in the 
Administration for which public notice has been given, if--
            ``(1) with respect to a position at the GS-7 level, the 
        individual--
                    ``(A) received, from an accredited institution 
                authorized to grant baccalaureate degrees, a 
                baccalaureate degree in a field of study for which 
                possession of that degree in conjunction with academic 
                achievements meets the qualification standards as 
                prescribed by the Office of Personnel Management for 
                the position to which the individual is being 
                appointed; and
                    ``(B) achieved a cumulative grade point average of 
                3.0 or higher on a 4.0 scale and a grade point average 
                of 3.5 or higher for courses in the field of study 
                required to qualify for the position;
            ``(2) with respect to a position at the GS-9 level, the 
        individual--
                    ``(A) received, from an accredited institution 
                authorized to grant graduate degrees, a graduate degree 
                in a field of study for which possession of that degree 
                meets the qualification standards at this grade level 
                as prescribed by the Office of Personnel Management for 
                the position to which the individual is being 
                appointed; and
                    ``(B) achieved a cumulative grade point average of 
                3.5 or higher on a 4.0 scale in graduate coursework in 
                the field of study required for the position;
            ``(3) with respect to a position at the GS-11 level, the 
        individual--
                    ``(A) received, from an accredited institution 
                authorized to grant graduate degrees, a graduate degree 
                in a field of study for which possession of that degree 
                meets the qualification standards at this grade level 
                as prescribed by the Office of Personnel Management for 
                the position to which the individual is being 
                appointed; and
                    ``(B) achieved a cumulative grade point average of 
                3.5 or higher on a 4.0 scale in graduate coursework in 
                the field of study required for the position; or
            ``(4) with respect to a research position at the GS-12 
        level, the individual--
                    ``(A) received, from an accredited institution 
                authorized to grant graduate degrees, a graduate degree 
                in a field of study for which possession of that degree 
                meets the qualification standards at this grade level 
                as prescribed by the Office of Personnel Management for 
                the position to which the individual is being 
                appointed; and
                    ``(B) achieved a cumulative grade point average of 
                3.5 or higher on a 4.0 scale in graduate coursework in 
                the field of study required for the position.
    ``(c) Veterans' preference procedures shall apply when selecting 
candidates under this section. Preference eligibles who meet the 
criteria for distinguished scholar appointments shall be considered 
ahead of nonpreference eligibles.
    ``(d) An appointment made under this authority shall be a career-
conditional appointment in the competitive civil service.
``Sec. 9835. Travel and transportation expenses of certain new 
              appointees
    ``(a) In this section, the term `new appointee' means--
            ``(1) a person newly appointed or reinstated to Federal 
        service to the Administration to--
                    ``(A) a career or career-conditional appointment;
                    ``(B) a term appointment;
                    ``(C) an excepted service appointment that provides 
                for noncompetitive conversion to a career or career-
                conditional appointment;
                    ``(D) a career or limited term Senior Executive 
                Service appointment;
                    ``(E) an appointment made under section 
                203(c)(2)(A) of the National Aeronautics and Space Act 
                of 1958 (42 U.S.C. 2473(c)(2)(A));
                    ``(F) an appointment to a position established 
                under section 3104; or
                    ``(G) an appointment to a position established 
                under section 5108; or
            ``(2) a student trainee who, upon completion of academic 
        work, is converted to an appointment in the Administration that 
        is identified in paragraph (1) in accordance with an 
        appropriate authority.
    ``(b) The Administrator may pay the travel, transportation, and 
relocation expenses of a new appointee to the same extent, in the same 
manner, and subject to the same conditions as the payment of such 
expenses under sections 5724, 5724a, 5724b, and 5724c to an employee 
transferred in the interests of the United States Government.
``Sec. 9836. Annual leave enhancements
    ``(a)(1) In this subsection--
            ``(A) the term `newly appointed employee' means an 
        individual who is first appointed--
                    ``(i) regardless of tenure, as an employee of the 
                Federal Government; or
                    ``(ii) as an employee of the Federal Government 
                following a break in service of at least 90 days after 
                that individual's last period of Federal employment, 
                other than--
                            ``(I) employment under the Student 
                        Educational Employment Program administered by 
                        the Office of Personnel Management;
                            ``(II) employment as a law clerk trainee;
                            ``(III) employment under a short-term 
                        temporary appointing authority while a student 
                        during periods of vacation from the educational 
                        institution at which the student is enrolled;
                            ``(IV) employment under a provisional 
                        appointment if the new appointment is permanent 
                        and immediately follows the provisional 
                        appointment; or
                            ``(V) employment under a temporary 
                        appointment that is neither full-time nor the 
                        principal employment of the individual;
            ``(B) the term `period of qualified non-Federal service' 
        means any period of service performed by an individual that--
                    ``(i) was performed in a position the duties of 
                which were directly related to the duties of the 
                position in the Administration to which that individual 
                will fill as a newly appointed employee; and
                    ``(ii) except for this section would not otherwise 
                be service performed by an employee for purposes of 
                section 6303; and
            ``(C) the term `directly related to the duties of the 
        position' means duties and responsibilities in the same line of 
        work which require similar qualifications.
    ``(2)(A) For purposes of section 6303, the Administrator may deem a 
period of qualified non-Federal service performed by a newly appointed 
employee to be a period of service of equal length performed as an 
employee.
    ``(B) A period deemed by the Administrator under subparagraph (A) 
shall continue to apply to the employee during--
            ``(i) the period of Federal service in which the deeming is 
        made; and
            ``(ii) any subsequent period of Federal service.
    ``(3)(A) Notwithstanding section 6303(a), the annual leave accrual 
rate for an employee of the Administration in a position paid under 
section 5376 or 5383, or for an employee in an equivalent category 
whose rate of basic pay is greater than the rate payable at GS-15, step 
10, shall be 1 day for each full biweekly pay period.
    ``(B) The accrual rate established under this paragraph shall 
continue to apply to the employee during--
            ``(i) the period of Federal service in which such accrual 
        rate first applies; and
            ``(ii) any subsequent period of Federal service.
``Sec. 9837. Limited appointments to Senior Executive Service positions
    ``(a) In this section--
            ``(1) the term `career reserved position' means a position 
        in the Administration designated under section 3132(b) which 
        may be filled only by--
                    ``(A) a career appointee; or
                    ``(B) a limited emergency appointee or a limited 
                term appointee--
                            ``(i) who, immediately before entering the 
                        career reserved position, was serving under a 
                        career or career-conditional appointment 
                        outside the Senior Executive Service; or
                            ``(ii) whose limited emergency or limited 
                        term appointment is approved in advance by the 
                        Office of Personnel Management;
            ``(2) the term `limited emergency appointee' has the 
        meaning given under section 3132; and
            ``(3) the term `limited term appointee' means an individual 
        appointed to a Senior Executive Service position in the 
        Administration to meet a bona fide temporary need, as 
        determined by the Administrator.
    ``(b) The number of career reserved positions which are filled by 
an appointee as described under subsection (a)(1)(B) may not exceed 10 
percent of the total number of Senior Executive Service positions 
allocated to the Administration.
    ``(c) Notwithstanding sections 3132 and 3394(b)--
            ``(1) the Administrator may appoint an individual to any 
        Senior Executive Service position in the Administration as a 
        limited term appointee under this section for a period of--
                    ``(A) 4 years or less to a position the duties of 
                which will expire at the end of such term; or
                    ``(B) 1 year or less to a position the duties of 
                which are continuing; and
            ``(2) in rare circumstances, the Administrator may 
        authorize an extension of a limited appointment under--
                    ``(A) paragraph (1)(A) for a period not to exceed 2 
                years; and
                    ``(B) paragraph (1)(B) for a period not to exceed 1 
                year.
    ``(d) A limited term appointee who has been appointed in the 
Administration from a career or career-conditional appointment outside 
the Senior Executive Service shall have reemployment rights in the 
agency from which appointed, or in another agency, under requirements 
and conditions established by the Office of Personnel Management. The 
Office shall have the authority to direct such placement in any agency.
    ``(e) Notwithstanding section 3394(b) and section 3395--
            ``(1) a limited term appointee serving under a term 
        prescribed under this section may be reassigned to another 
        Senior Executive Service position in the Administration, the 
        duties of which will expire at the end of a term of 4 years or 
        less; and
            ``(2) a limited term appointee serving under a term 
        prescribed under this section may be reassigned to another 
        continuing Senior Executive Service position in the 
        Administration, except that the appointee may not serve in 1 or 
        more positions in the Administration under such appointment in 
        excess of 1 year, except that in rare circumstances, the 
        Administrator may approve an extension up to an additional 1 
        year.
    ``(f) A limited term appointee may not serve more than 7 
consecutive years under any combination of limited appointments.
    ``(g) Notwithstanding section 5384, the Administrator may authorize 
performance awards to limited term appointees in the Administration in 
the same amounts and in the same manner as career appointees.
``Sec. 9838. Superior qualifications pay
    ``(a) In this section the term `employee' means an employee as 
defined under section 2105 who is employed by the Administration.
    ``(b) Notwithstanding section 5334, the Administrator may set the 
pay of an employee paid under the General Schedule at any step within 
the pay range for the grade of the position, based on the superior 
qualifications of the employee, or the special need of the 
Administration.
    ``(c) If an exercise of the authority under this section relates to 
a current employee selected for another position within the 
Administration, a determination shall be made that the employee's 
contribution in the new position will exceed that in the former 
position, before setting pay under this section.
    ``(d) Pay as set under this section is basic pay for such purposes 
as pay set under section 5334.
    ``(e) If the employee serves for at least 1 year in the position 
for which the pay determination under this section was made, or a 
successor position, the pay earned under such position may be used in 
succeeding actions to set pay under chapter 53.
    ``(f) The Administrator may waive the restrictions in subsection 
(e), based on criteria established in the plan required under 
subsection (g).
    ``(g) Before setting any employee's pay under this section, the 
Administrator shall submit a plan to the Office of Personnel 
Management, that includes--
            ``(1) criteria for approval of actions to set pay under 
        this section;
            ``(2) the level of approval required to set pay under this 
        section;
            ``(3) all types of actions and positions to be covered;
            ``(4) the relationship between the exercise of authority 
        under this section and the use of other pay incentives; and
            ``(5) a process to evaluate the effectiveness of this 
        section.''.
    (b) Technical and Conforming Amendment.--
            (1) Table of chapters.--The table of chapters for part III 
        of title 5, United States Code, is amended by adding at the end 
        the following:

``98. National Aeronautics and Space Administration.........    9801''.
            (2) Compensation for certain excepted personnel.--
                    (A) In general.--Subparagraph (A) of section 
                203(c)(2) of the National Aeronautics and Space Act of 
                1958 (42 U.S.C. 2473(c)(2)(A)) is amended by striking 
                ``the highest rate of grade 18 of the General Schedule 
                of the Classification Act of 1949, as amended,'' and 
                inserting ``the rate of basic pay payable for level III 
                of the Executive Schedule,''.
                    (B) Effective date.--Notwithstanding section 313, 
                the amendment made by this paragraph shall take effect 
                on the first day of the first pay period beginning on 
                or after the effective date of this Act.
            (3) Compensation clarification.--Section 209 of title 18, 
        United States Code, as amended by section 209(g)(2) of the E-
        Government Act of 2002 (Public Law 107-347; 116 Stat. 2932), is 
        amended by adding at the end the following:
    ``(h)(1) In this subsection, the term `private sector entity' has 
the meaning given under section 9832(a) of title 5.
    ``(2) This section does not prohibit an employee of a private 
sector entity, while assigned to the National Aeronautics and Space 
Administration under section 9832 of title 5, from continuing to 
receive pay and benefits from that entity in accordance with section 
9832 of that title.''.
            (4) Other amendments.--Section 125(c)(1) of Public Law 100-
        238 (5 U.S.C. 8432 note), as amended by section 209(g)(3) of 
        the E-Government Act of 2002 (Public Law 107-347; 116 Stat. 
        2932), is amended--
                    (A) in subparagraph (C), by striking ``or'' at the 
                end;
                    (B) in subparagraph (D), by striking ``and'' at the 
                end and inserting ``or''; and
                    (C) by adding at the end the following:
                    ``(E) an individual assigned from the National 
                Aeronautics and Space Administration to a private 
                sector organization under section 9832 of title 5, 
                United States Code; and''.

SEC. 312. EFFECTIVE DATE.

    This subtitle shall take effect 180 days after the date of 
enactment of this Act.

                TITLE IV--HUMAN CAPITAL PERFORMANCE FUND

SEC. 401. HUMAN CAPITAL PERFORMANCE FUND.

    (a) Subpart D of part III of title 5, United States Code, is 
amended by inserting after chapter 53 the following:

              ``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.
``Sec. 5401. Purpose
    ``The purpose of this chapter is to promote, through the creation 
of a Human Capital Performance Fund, greater performance in the Federal 
Government. Monies from the Fund will be used to reward agencies' 
highest performing and most valuable employees. This Fund will offer 
Federal managers a new tool to recognize employee performance that is 
critical to the achievement of agency missions.
``Sec. 5402. Definitions
    ``For the purpose of this chapter--
            ``(1) `agency' means an Executive agency under section 105, 
        but does not include the General Accounting Office; -------
            ``(2) `employee' includes--
                    ``(A) an individual paid under a statutory pay 
                system defined in section 5302(1);
                    ``(B) a prevailing rate employee, as defined in 
                section 5342(a)(2); and
                    ``(C) a category of employees included by the 
                Office of Personnel Management following the review of 
                an agency plan under section 5403(b)(1);
        but does not include--
                    ``(i) an individual paid at an annual rate of basic 
                pay for a level of the Executive Schedule, under 
                subchapter II of chapter 53, or at a rate provided for 
                one of those levels under another provision of law;--
                    ``(ii) a member of the Senior Executive Service 
                paid under subchapter VIII of chapter 53, or an 
                equivalent system;
                    ``(iii) an administrative law judge paid under 
                section 5372;
                    ``(iv) a contract appeals board member paid under 
                section 5372a;
                    ``(v) an administrative appeals judge paid under 
                section 5372b; and
                    ``(vi) an individual in a position which is 
                excepted from the competitive service because of its 
                confidential, policy-determining, policy-making, or 
                policy-advocating character; and
            ``(3) `Office' means the Office of Personnel Management.
``Sec. 5403. Human Capital Performance Fund
    ``(a) There is hereby established the Human Capital Performance 
Fund, to be administered by the Office for the purpose of this chapter.
    ``(b)(1)(A) An agency shall submit a plan as described in section 
5406 to be eligible for consideration by the Office for an allocation 
under this section. An allocation shall be made only upon approval by 
the Office of an agency's plan.
    ``(B)(i) After the reduction for training required under section 
5408, ninety percent of the remaining amount appropriated to the Fund 
may be allocated by the Office to the agencies. Of the amount to be 
allocated, an agency's pro rata distribution may not exceed its pro 
rata share of Executive branch payroll.
    ``(ii) If the Office does not allocate an agency's full pro rata 
share, the undistributed amount remaining from that share will become 
available for distribution to other agencies, as provided in 
subparagraph (C).
    ``(C)(i) After the reduction for training under section 5408, ten 
percent of the remaining amount appropriated to the Fund, as well as 
the amount of the pro rata share not distributed because of an agency's 
failure to submit a satisfactory plan, shall be allocated among 
agencies with exceptionally high-quality plans.
    ``(ii) An agency with an exceptionally high-quality plan is 
eligible to receive an additional distribution in addition to its full 
pro rata distribution.
    ``(2) Each agency is required to provide to the Office such payroll 
information as the Office specifies necessary to determine the 
Executive branch payroll.
``Sec. 5404. Human capital performance payments
    ``(a)(1) Notwithstanding any other provision of law, the Office may 
authorize an agency to provide human capital performance payments to 
individual employees based on exceptional performance contributing to 
the achievement of the agency mission.
    ``(2) The number of employees in an agency receiving payments from 
the Fund, in any year, shall not be more than the number equal to 15 
percent of the agency's average total civilian full- and part-time 
permanent employment for the previous fiscal year.
    ``(b)(1) A human capital performance payment provided to an 
individual employee from the Fund, in any year, shall not exceed 10 
percent of the employee's rate of basic pay.
    ``(2) The aggregate of an employee's rate of basic pay, adjusted by 
any locality-based comparability payments, and human capital 
performance pay, as defined by regulation, may not exceed the rate of 
basic pay for Executive Level IV in any year.
    ``(c) No monies from the Human Capital Performance Fund may be used 
to pay for a new position, for other performance-related payments, or 
for recruitment or retention incentives paid under sections 5753 and 
5754.
    ``(d)(1) An agency may finance initial human capital performance 
payments using monies from the Human Capital Performance Fund, as 
available.
    ``(2) In subsequent years, continuation of previously awarded human 
capital performance payments shall be financed from other agency funds 
available for salaries and expenses.
``Sec. 5405. Regulations
    ``The Office shall issue such regulations as it determines to be 
necessary for the administration of this chapter, including the 
administration of the Fund. The Office's regulations shall include 
criteria governing--
            ``(1) an agency plan under section 5406;
            ``(2) the allocation of monies from the Fund to agencies;
            ``(3) the nature, extent, duration, and adjustment of, and 
        approval processes for, payments to individual employees under 
        this chapter;
            ``(4) the relationship to this chapter of agency 
        performance management systems;
            ``(5) training of supervisors, managers, and other 
        individuals involved in the process of making performance 
        distinctions; and-
            ``(6) the circumstances under which funds may be allocated 
        by the Office to an agency in amounts below or in excess of the 
        agency's pro rata share.
``Sec. 5406. Agency plan
    ``To be eligible for consideration by the Office for an allocation 
under this section, an agency shall--
            ``(1) submit a plan, subject to review and approval by the 
        Office;
            ``(2) demonstrate that its performance management system 
        supports agency strategic performance goals and objectives, and 
        is used to make meaningful distinctions based on relative 
        performance;
            ``(3) provide sufficient training to supervisors, managers, 
        and other individuals involved in the process of making 
        performance distinctions;-
            ``(4) upon approval, receive an allocation of funding from 
        the Office;
            ``(5) make payments to individual employees in accordance 
        with the agency's approved plan; and
            ``(6) provide such information to the Office regarding 
        payments made and use of funds received under this section as 
        the Office may specify.
``Sec. 5407. Nature of payment
    ``Any payment to an employee under this section shall be part of 
the employee's basic pay for the purposes of subchapter III of chapter 
83, and chapters 84 and 87, and for such other purposes (other than 
chapter 75) as the Office shall determine by regulation.
``Sec. 5408. Appropriations
    ``There is authorized to be appropriated $500 million for fiscal 
year 2004, and, for each subsequent fiscal year, such sums as may be 
necessary to carry out the provisions of this chapter. In the first 
year of implementation, up to 10 percent of the amount appropriated to 
the Fund shall be available to participating agencies to train 
supervisors, managers, and other individuals involved in the appraisal 
process on using performance management systems to make meaningful 
distinctions in employee performance and on the use of the Fund.''.
    (b) The table of chapters for part III of title 5, United States 
Code, is amended by inserting after the item relating to chapter 53 the 
following:

``54. Human Capital Performance Fund........................    5401''.

                                 <all>
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