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[House Report 105-40]
[From the U.S. Government Publishing Office]

105th Congress                                             Rept. 105-40
                        HOUSE OF REPRESENTATIVES

 1st Session                                                     Part 1
_______________________________________________________________________

 
             VETERANS EMPLOYMENT OPPORTUNITIES ACT OF 1997

                                _______
                                

                 March 20, 1997.--Ordered to be printed

                                _______
                                

  Mr. Burton, from the Committee on Government Reform and Oversight, 
                        submitted the following

                              R E P O R T

                        [To accompany H.R. 240]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Government Reform and Oversight, to whom was 
referred the bill (H.R. 240) to amend title 5, United States 
Code, to provide that consideration may not be denied to 
preference eligibles applying for certain positions in the 
competitive service, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
  I. Background and Need for the Legislation..........................9
 II. Legislative Hearings and Committee Actions......................13
III. Committee Hearings and Written Testimony........................13
 IV. Explanation of the Bill.........................................16
  V. Compliance with Rule XI.........................................19
 VI. Budget Analysis and Projections.................................19
VII. Cost Estimate of the Congressional Budget Office................20
VIII.Specific Constitutional Authority for this Legislation..........22

 IX. Changes in Existing Law.........................................22
  X. Committee Recommendation........................................34
 XI. Congressional Accountability Act; Public Law 104-1..............34

    The amendment is as follows:
    Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Employment Opportunities 
Act of 1997''.

SEC. 2. EQUAL ACCESS FOR VETERANS.

    (a) Competitive Service.--Section 3304 of title 5, United States 
Code, is amended by adding at the end the following:
    ``(f)(1) No preference eligible, and no individual (other than a 
preference eligible) who has been separated from the armed forces under 
honorable conditions after 3 or more years of active service, shall be 
denied the opportunity to compete for an announced vacant position 
within an agency, in the competitive service or the excepted service, 
by reason of--
          ``(A) not having acquired competitive status; or
          ``(B) not being an employee of such agency.
    ``(2) Nothing in this subsection shall prevent an agency from 
filling a vacant position (whether by appointment or otherwise) solely 
from individuals on a priority placement list consisting of individuals 
who have been separated from the agency due to a reduction in force and 
surplus employees (as defined under regulations prescribed by the 
Office).''.
    (b) Civil Service Employment Information.--
          (1) Vacant positions.--Section 3327(b) of title 5, United 
        States Code, is amended by striking ``and'' at the end of 
        paragraph (1), by redesignating paragraph (2) as paragraph (3), 
        and by inserting after paragraph (1) the following:
          ``(2) each vacant position in the agency for which 
        competition is restricted to individuals having competitive 
        status or employees of such agency, excluding any position 
        under paragraph (1), and''.
          (2) Additional information.--Section 3327 of title 5, United 
        States Code, is amended by adding at the end the following:
    ``(c) Any notification provided under this section shall, for all 
positions under subsection (b)(1) as to which section 3304(f) applies 
and for all positions under subsection (b)(2), include a notation as to 
the applicability of section 3304(f) with respect thereto.
    ``(d) In consultation with the Secretary of Labor, the Office shall 
submit to Congress and the President, no less frequently than every 2 
years, a report detailing, with respect to the period covered by such 
report--
          ``(1) the number of positions listed under this section 
        during such period;
          ``(2) the number of preference eligibles and other 
        individuals described in section 3304(f)(1) referred to such 
        positions during such period; and
          ``(3) the number of preference eligibles and other 
        individuals described in section 3304(f)(1) appointed to such 
        positions during such period.''.
    (c) Governmentwide Lists.--
          (1) Vacant positions.--Section 3330(b) of title 5, United 
        States Code, is amended to read as follows:
    ``(b) The Office of Personnel Management shall cause to be 
established and kept current--
          ``(1) a comprehensive list of all announcements of vacant 
        positions (in the competitive service and the excepted service, 
        respectively) within each agency that are to be filled by 
        appointment for more than 1 year and for which applications are 
        being or will soon be accepted from outside the agency's work 
        force; and
          ``(2) a comprehensive list of all announcements of vacant 
        positions within each agency for which applications are being 
        or will soon be accepted and for which competition is 
        restricted to individuals having competitive status or 
        employees of such agency, excluding any position required to be 
        listed under paragraph (1).''.
          (2) Additional information.--Section 3330(c) of title 5, 
        United States Code, is amended by striking ``and'' at the end 
        of paragraph (2), by redesignating paragraph (3) as paragraph 
        (4), and by inserting after paragraph (2) the following:
          ``(3) for all positions under subsection (b)(1) as to which 
        section 3304(f) applies and for all positions under subsection 
        (b)(2), a notation as to the applicability of section 3304(f) 
        with respect thereto; and''.
          (3) Conforming amendment.--Section 3330(d) of title 5, United 
        States Code, is amended by striking ``The list'' and inserting 
        ``Each list under subsection (b)''.
    (d) Provisions Relating to the United States Postal Service.--
          (1) In general.--Subsection (a) of section 1005 of title 39, 
        United States Code, is amended by adding at the end the 
        following:
    ``(5)(A) The provisions of section 3304(f) of title 5 shall apply 
with respect to the Postal Service in the same manner and under the 
same conditions as if the Postal Service were an agency within the 
meaning of such provisions.
    ``(B) Nothing in this subsection shall be considered to require the 
application of section 3304(f) of title 5 in the case of any individual 
who is not an employee of the Postal Service if--
          ``(i) the vacant position involved is to be filled pursuant 
        to a collective-bargaining agreement;
          ``(ii) the collective-bargaining agreement restricts 
        competition for such position to individuals employed in a 
        bargaining unit or installation within the Postal Service in 
        which the position is located;
          ``(iii) the collective-bargaining agreement provides that the 
        successful applicant shall be selected on the basis of 
        seniority or qualifications; and
          ``(iv) the position to be filled is within a bargaining unit.
    ``(C) The provisions of this paragraph shall not be modified by any 
program developed under section 1004 of this title or any collective-
bargaining agreement entered into under chapter 12 of this title.''.
          (2) Conforming amendment.--The first sentence of section 
        1005(a)(2) of title 39, United States Code, is amended by 
        striking ``title.'' and inserting ``title, subject to paragraph 
        (5) of this subsection.''.

SEC. 3. SPECIAL PROTECTIONS FOR PREFERENCE ELIGIBLES IN REDUCTIONS IN 
                    FORCE.

    (a) In General.--Section 3502 of title 5, United States Code, as 
amended by section 1034 of the National Defense Authorization Act for 
Fiscal Year 1996 (Public Law 104-106; 110 Stat. 430), is amended by 
adding at the end the following:
    ``(g)(1) A position occupied by a preference eligible shall not be 
placed in a single-position competitive level if the preference 
eligible is qualified to perform the essential functions of any other 
position at the same grade (or occupational level) in the competitive 
area. In such cases, the preference eligible shall be entitled to be 
placed in another competitive level for which such preference eligible 
is qualified. If the preference eligible is qualified for more than one 
competitive level, such preference eligible shall be placed in the 
competitive level containing the most positions.
    ``(2) For purposes of paragraph (1)--
          ``(A) a preference eligible shall be considered qualified to 
        perform the essential functions of a position if, by reason of 
        experience, training, or education (and, in the case of a 
        disabled veteran, with reasonable accommodation), a reasonable 
        person could conclude that the preference eligible would be 
        able to perform those functions successfully within a period of 
        150 days; and
          ``(B) a preference eligible shall not be considered 
        unqualified solely because such preference eligible does not 
        meet the minimum qualification requirements relating to 
        previous experience in a specified grade (or occupational 
        level), if any, that are established for such position by the 
        Office of Personnel Management or the agency.
    ``(h) In connection with any reduction in force, a preference 
eligible whose current or most recent performance rating is at least 
fully successful (or the equivalent) shall have, in addition to such 
assignment rights as are prescribed by regulation, the right, in lieu 
of separation, to be assigned to any position within the agency 
conducting the reduction in force--
          ``(1) for which such preference eligible is qualified under 
        subsection (g)(2)--
                  ``(A) that is within the preference eligible's 
                commuting area and at the same grade (or occupational 
                level) as the position from which the preference 
                eligible was released, and that is then occupied by an 
                individual, other than another preference eligible, who 
                was placed in such position (whether by appointment or 
                otherwise) within 6 months before the reduction in 
                force if, within 12 months prior to the date on which 
                such individual was so placed in such position, such 
                individual had been employed in the same competitive 
                area as the preference eligible; or
                  ``(B) that is within the preference eligible's 
                competitive area and that is then occupied by an 
                individual, other than another preference eligible, who 
                was placed in such position (whether by appointment or 
                otherwise) within 6 months before the reduction in 
                force; or
          ``(2) for which such preference eligible is qualified that is 
        within the preference eligible's competitive area and that is 
        not more than 3 grades (or pay levels) below that of the 
        position from which the preference eligible was released, 
        except that, in the case of a preference eligible with a 
        compensable service-connected disability of 30 percent or more, 
        this paragraph shall be applied by substituting `5 grades' for 
        `3 grades'.
In the event that a preference eligible is entitled to assignment to 
more than 1 position under this subsection, the agency shall assign the 
preference eligible to any such position requiring no reduction (or, if 
there is no such position, the least reduction) in basic pay. A 
position shall not, with respect to a preference eligible, be 
considered to satisfy the requirements of paragraph (1) or (2), as 
applicable, if it does not last for at least 12 months following the 
date on which such preference eligible is assigned to such position 
under this subsection.
    ``(i) A preference eligible may challenge the classification of any 
position to which the preference eligible asserts assignment rights (as 
provided by, or prescribed by regulations described in, subsection (h)) 
in an action before the Merit Systems Protection Board.
    ``(j)(1) Not later than 90 days after the date of the enactment of 
the Veterans Employment Opportunities Act of 1997, each Executive 
agency shall establish an agencywide priority placement program to 
facilitate employment placement for employees who--
          ``(A)(i) are scheduled to be separated from service due to a 
        reduction in force under--
                  ``(I) regulations prescribed under this section; or
                  ``(II) procedures established under section 3595; or
          ``(ii) are separated from service due to such a reduction in 
        force; and
          ``(B)(i) have received a rating of at least fully successful 
        (or the equivalent) as the last performance rating of record 
        used for retention purposes; or
          ``(ii) occupy positions excluded from a performance appraisal 
        system by law, regulation, or administrative action taken by 
        the Office of Personnel Management.
  ``(2)(A) Each agencywide priority placement program under this 
subsection shall include provisions under which a vacant position shall 
not (except as provided in this paragraph or any other statute 
providing the right of reemployment to any individual) be filled by the 
appointment or transfer of any individual from outside of that agency 
(other than an individual described in subparagraph (B)) if--
          ``(i) there is then available any individual described in 
        subparagraph (B) who is qualified for the position; and
          ``(ii) the position--
                  ``(I) is at the same grade or pay level (or the 
                equivalent) or not more than 3 grades (or grade 
                intervals) below that of the position last held by such 
                individual before placement in the new position;
                  ``(II) is within the same commuting area as the 
                individual's last-held position (as referred to in 
                subclause (I)) or residence; and
                  ``(III) has the same type of work schedule (whether 
                full-time, part-time, or intermittent) as the position 
                last held by the individual.
  ``(B) For purposes of an agencywide priority placement program, an 
individual shall be considered to be described in this subparagraph if 
such individual--
          ``(i)(I) is an employee of such agency who is scheduled to be 
        separated, as described in paragraph (1)(A)(i); or
          ``(II) is an individual who became a former employee of such 
        agency as a result of a separation, as described in paragraph 
        (1)(A)(ii), excluding any individual who separated voluntarily 
        under subsection (f); and
          ``(ii) satisfies clause (i) or (ii) of paragraph (1)(B).
  ``(3)(A) If after a reduction in force the agency has no positions of 
any type within the local commuting areas specified in this subsection, 
the individual may designate a different local commuting area where the 
agency has continuing positions in order to exercise reemployment 
rights under this subsection. An agency may determine that such 
designations are not in the interest of the Government for the purpose 
of paying relocation expenses under subchapter II of chapter 57.
  ``(B) At its option, an agency may administratively extend 
reemployment rights under this subsection to include other local 
commuting areas.
  ``(4)(A) In selecting employees for positions under this subsection, 
the agency shall place qualified present and former employees in 
retention order by veterans' preference subgroup and tenure group.
  ``(B) An agency may not pass over a qualified present or former 
employee to select an individual in a lower veterans' preference 
subgroup within the tenure group, or in a lower tenure group.
  ``(C) Within a subgroup, the agency may select a qualified present or 
former employee without regard to the individual's total creditable 
service.
  ``(5) An individual is eligible for reemployment priority under this 
subsection for 2 years from the effective date of the reduction in 
force from which the individual will be, or has been, separated under 
this section or section 3595, as the case may be.
  ``(6) An individual loses eligibility for reemployment priority under 
this subsection when the individual--
          ``(A) requests removal in writing;
          ``(B) accepts or declines a bona fide offer under this 
        subsection or fails to accept such an offer within the period 
        of time allowed for such acceptance, or
          ``(C) separates from the agency before being separated under 
        this section or section 3595, as the case may be.
A present or former employee who declines a position with a 
representative rate (or equivalent) that is less than the rate of the 
position from which the individual was separated under this section 
retains eligibility for positions with a higher representative rate up 
to the rate of the individual's last position.
  ``(7) Whenever more than one individual is qualified for a position 
under this subsection, the agency shall select the most highly 
qualified individual, subject to paragraph (4).
  ``(8) The Office of Personnel Management shall issue regulations to 
implement this subsection.''.
  (b) Applicability.--
          (1) In general.--Subject to paragraph (2), the amendments 
        made by this section shall apply with respect to--
                  (A) reductions in force taking effect after the end 
                of the 90-day period beginning on the date of the 
                enactment of this Act; or
                  (B) in the case of the Department of Defense, 
                reductions in force taking effect after the end of the 
                1-year period beginning on the date of the enactment of 
                this Act.
          (2) Ongoing reductions in force.--If an agency has given 
        written notice of a reduction in force to any of its employees 
        within a competitive area, in accordance with section 
        3502(d)(1)(A) of title 5, United States Code, before the 
        effective date under subparagraph (A) or (B) of paragraph (1), 
        as applicable, then, for purposes of determining the rights of 
        any employee within such area in connection with such reduction 
        in force, the amendments made by this section shall be treated 
        as if they had never been enacted. Nothing in the preceding 
        sentence shall affect any rights under a priority placement 
        program under section 3502(j) of title 5, United States Code, 
        as amended by this section.

SEC. 4. IMPROVED REDRESS FOR VETERANS.

  (a) In General.--Subchapter I of chapter 33 of title 5, United States 
Code, is amended by adding at the end the following:

``Sec. 3330a. Administrative redress

  ``(a)(1) Any preference eligible or other individual described in 
section 3304(f)(1) who alleges that an agency has violated such 
individual's rights under any statute or regulation relating to 
veterans' preference, or any right afforded such individual by section 
3304(f), may file a complaint with the Secretary of Labor.
  ``(2) A complaint under this subsection must be filed within 60 days 
after the date of the alleged violation, and the Secretary shall 
process such complaint in accordance with sections 4322 (a) through 
(e)(1) and 4326 of title 38.
  ``(b)(1) If the Secretary of Labor is unable to resolve the complaint 
within 60 days after the date on which it is filed, the complainant may 
elect to appeal the alleged violation to the Merit Systems Protection 
Board in accordance with such procedures as the Merit Systems 
Protection Board shall prescribe, except that in no event may any such 
appeal be brought--
          ``(A) before the 61st day after the date on which the 
        complaint is filed under subsection (a); or
          ``(B) later than 15 days after the date on which the 
        complainant receives notification from the Secretary of Labor 
        under section 4322(e)(1) of title 38.
  ``(2) An appeal under this subsection may not be brought unless--
          ``(A) the complainant first provides written notification to 
        the Secretary of Labor of such complainant's intention to bring 
        such appeal; and
          ``(B) appropriate evidence of compliance with subparagraph 
        (A) is included (in such form and manner as the Merit Systems 
        Protection Board may prescribe) with the notice of appeal under 
        this subsection.
  ``(3) Upon receiving notification under paragraph (2)(A), the 
Secretary of Labor shall not continue to investigate or further attempt 
to resolve the complaint to which such notification relates.
  ``(c) This section shall not be construed to prohibit a preference 
eligible from appealing directly to the Merit Systems Protection Board 
from any action which is appealable to the Board under any other law, 
rule, or regulation, in lieu of administrative redress under this 
section.

``Sec. 3330b. Judicial redress

  ``(a) In lieu of continuing the administrative redress procedure 
provided under section 3330a(b), a preference eligible or other 
individual described in section 3304(f)(1) may elect, in accordance 
with this section, to terminate those administrative proceedings and 
file an action with the appropriate United States district court not 
later than 60 days after the date of the election.
  ``(b) An election under this section may not be made--
          ``(1) before the 121st day after the date on which the appeal 
        is filed with the Merit Systems Protection Board under section 
        3330a(b); or
          ``(2) after the Merit Systems Protection Board has issued a 
        judicially reviewable decision on the merits of the appeal.
  ``(c) An election under this section shall be made, in writing, in 
such form and manner as the Merit Systems Protection Board shall by 
regulation prescribe. The election shall be effective as of the date on 
which it is received, and the administrative proceeding to which it 
relates shall terminate immediately upon the receipt of such election.

``Sec. 3330c. Remedy

  ``(a) If the Merit Systems Protection Board (in a proceeding under 
section 3330a) or a court (in a proceeding under section 3330b) 
determines that an agency has violated a right described in section 
3330a, the Board or court (as the case may be) shall order the agency 
to comply with such provisions and award compensation for any loss of 
wages or benefits suffered by the individual by reason of the violation 
involved. If the Board or court determines that such violation was 
willful, it shall award an amount equal to backpay as liquidated 
damages.
  ``(b) A preference eligible or other individual described in section 
3304(f)(1) who prevails in an action under section 3330a or 3330b shall 
be awarded reasonable attorney fees, expert witness fees, and other 
litigation expenses.''.
  (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 33 of title 5, United States Code, is amended by adding after 
the item relating to section 3330 the following:

``3330a. Administrative redress.
``3330b. Judicial redress.
``3330c. Remedy.''.

SEC. 5. EXTENSION OF VETERANS' PREFERENCE.

  (a) Amendment to Title 5, United States Code.--Paragraph (3) of 
section 2108 of title 5, United States Code, is amended by striking 
``the Federal Bureau of Investigation and Drug Enforcement 
Administration Senior Executive Service, or the General Accounting 
Office;'' and inserting ``or the Federal Bureau of Investigation and 
Drug Enforcement Administration Senior Executive Service;''.
  (b) Amendments to Title 3, United States Code.--
          (1) In general.--Chapter 2 of title 3, United States Code, is 
        amended by adding at the end the following:

``Sec. 115. Veterans' preference

  ``(a) Subject to subsection (b), appointments under sections 105, 
106, and 107 shall be made in accordance with section 2108, and 
sections 3309 through 3312, of title 5.
  ``(b) Subsection (a) shall not apply to any appointment to a position 
the rate of basic pay for which is at least equal to the minimum rate 
established for positions in the Senior Executive Service under section 
5382 of title 5 and the duties of which are comparable to those 
described in section 3132(a)(2) of such title or to any other position 
if, with respect to such position, the President makes certification--
          ``(1) that such position is--
                  ``(A) a confidential or policy-making position; or
                  ``(B) a position for which political affiliation or 
                political philosophy is otherwise an important 
                qualification; and
          ``(2) that any individual selected for such position is 
        expected to vacate the position at or before the end of the 
        President's term (or terms) of office.
Each individual appointed to a position described in the preceding 
sentence as to which the expectation described in paragraph (2) applies 
shall be notified as to such expectation, in writing, at the time of 
appointment to such position.''.
          (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 2 of title 3, United States Code, is 
        amended by adding at the end the following:

``115. Veterans' preference.''.

  (c) Legislative Branch Appointments.--
          (1) Definitions.--For the purposes of this subsection, the 
        terms ``employing office'', ``covered employee'', and ``Board'' 
        shall each have the meaning given such term by section 101 of 
        the Congressional Accountability Act of 1995 (2 U.S.C. 1301).
          (2) Rights and protections.--The rights and protections 
        established under section 2108, sections 3309 through 3312, and 
        subchapter I of chapter 35, of title 5, United States Code, 
        shall apply to covered employees.
          (3) Remedies.--
                  (A) In general.--The remedy for a violation of 
                paragraph (2) shall be such remedy as would be 
                appropriate if awarded under applicable provisions of 
                title 5, United States Code, in the case of a violation 
                of the relevant corresponding provision (referred to in 
                paragraph (2)) of such title.
                  (B) Procedure.--The procedure for consideration of 
                alleged violations of paragraph (2) shall be the same 
                as apply under section 401 of the Congressional 
                Accountability Act of 1995 (and the provisions of law 
                referred to therein) in the case of an alleged 
                violation of part A of title II of such Act.
          (4) Regulations to implement subsection.--
                  (A) In general.--The Board shall, pursuant to section 
                304 of the Congressional Accountability Act of 1995 (2 
                U.S.C. 1384), issue regulations to implement this 
                subsection.
                  (B) Agency regulations.--The regulations issued under 
                subparagraph (A) shall be the same as the most relevant 
                substantive regulations (applicable with respect to the 
                executive branch) promulgated to implement the 
                statutory provisions referred to in paragraph (2) 
                except insofar as the Board may determine, for good 
                cause shown and stated together with the regulation, 
                that a modification of such regulations would be more 
                effective for the implementation of the rights and 
                protections under this subsection.
                  (C) Coordination.--The regulations issued under 
                subparagraph (A) shall be consistent with section 225 
                of the Congressional Accountability Act of 1995 (2 
                U.S.C. 1361).
          (5) Applicability.--Notwithstanding any other provision of 
        this subsection, the term ``covered employee'' shall not, for 
        purposes of this subsection, include an employee--
                  (A) whose appointment is made by the President with 
                the advice and consent of the Senate;
                  (B) whose appointment is made by a Member of Congress 
                or by a committee or subcommittee of either House of 
                Congress; or
                  (C) who is appointed to a position, the duties of 
                which are equivalent to those of a Senior Executive 
                Service position (within the meaning of section 
                3132(a)(2) of title 5, United States Code).
          (6) Effective date.--Paragraphs (2) and (3) shall be 
        effective as of the effective date of the regulations under 
        paragraph (4).
  (d) Judicial Branch Appointments.--
          (1) In general.--Subject to paragraphs (2) through (4), the 
        Judicial Conference of the United States shall prescribe 
        regulations to provide for--
                  (A) veterans' preference in the consideration of 
                applicants for employment, and in the conduct of any 
                reductions in force, within the judicial branch; and
                  (B) redress procedures for alleged violations of any 
                rights provided for under subparagraph (A).
          (2) Regulations to be based on existing provisions.--Under 
        the regulations--
                  (A) a preference eligible (as defined by section 2108 
                of title 5, United States Code) shall be afforded 
                preferences similar to those under sections 3309 
                through 3312, and subchapter I of chapter 35, of such 
                title 5; and
                  (B) the redress procedures provided for shall be 
                similar to those under the amendments made by section 
                4.
          (3) Exclusions.--Nothing in the regulations shall apply with 
        respect to--
                  (A) an appointment made by the President, with the 
                advice and consent of the Senate;
                  (B) an appointment as a judicial officer;
                  (C) an appointment as a law clerk or secretary to a 
                justice or judge of the United States; or
                  (D) an appointment to a position, the duties of which 
                are equivalent to those of a Senior Executive Service 
                position (within the meaning of section 3132(a)(2) of 
                title 5, United States Code).
          (4) Consultation.--The regulations under this subsection 
        shall be prescribed by the Judicial Conference of the United 
        States, in consultation with--
                  (A) the largest congressionally chartered veterans' 
                service organization;
                  (B) 2 congressionally chartered veterans' service 
                organizations that represent former noncommissioned 
                officers;
                  (C) a congressionally chartered veterans' service 
                organization that represents veterans who have fought 
                in foreign wars;
                  (D) a congressionally chartered veterans' service 
                organization that represents veterans with service-
                connected disabilities;
                  (E) a congressionally chartered veterans' service 
                organization that represents veterans of the Vietnam 
                era; and
                  (F) a congressionally chartered veterans' service 
                organization that represents veterans of World War II, 
                the Korean conflict, the Vietnam era, and the Persian 
                Gulf War.
          (5) Definitions.--For purposes of this subsection--
                  (A) the term ``judicial officer'' means a justice, 
                judge, or magistrate judge listed in subparagraph (A), 
                (B), (F), or (G) of section 376(a)(1) of title 28, 
                United States Code; and
                  (B) the term ``justice or judge of the United 
                States'' has the meaning given such term by section 451 
                of such title 28.
          (6) Submission to congress; effective date.--
                  (A) Submission to congress.--Within 5 months after 
                the date of the enactment of this Act, the Judicial 
                Conference of the United States shall submit a copy of 
                the regulations prescribed under this subsection to the 
                Committee on Government Reform and Oversight and the 
                Committee on the Judiciary of the House of 
                Representatives and the Committee on Governmental 
                Affairs and the Committee on the Judiciary of the 
                Senate.
                  (B) Effective date.--The regulations prescribed under 
                this subsection shall take effect 6 months after the 
                date of the enactment of this Act.

SEC. 6. VETERANS' PREFERENCE REQUIRED FOR REDUCTIONS IN FORCE IN THE 
                    FEDERAL AVIATION ADMINISTRATION.

  Section 347(b) of the Department of Transportation and Related 
Agencies Appropriations Act, 1996 (109 Stat. 460) is amended by 
striking ``and'' at the end of paragraph (6), by striking the period at 
the end of paragraph (7) and inserting ``; and'', and by adding at the 
end the following:
          ``(8) sections 3501-3504, as such sections relate to 
        veterans' preference.''.

SEC. 7. DEFINITIONAL AMENDMENT.

  Subparagraph (A) of section 2108(1) of title 5, United States Code, 
is amended by inserting ``during a military operation in a qualified 
hazardous duty area (within the meaning of the first 2 sentences of 
section 1(b) of Public Law 104-117) and in accordance with requirements 
that may be prescribed in regulations of the Secretary of Defense,'' 
after ``for which a campaign badge has been authorized,''.

SEC. 8. FAILURE TO COMPLY WITH VETERANS' PREFERENCE REQUIREMENTS TO BE 
                    TREATED AS A PROHIBITED PERSONNEL PRACTICE FOR 
                    CERTAIN PURPOSES.

  (a) In General.--Subsection (b) of section 2302 of title 5, United 
States Code, is amended--
          (1) by striking ``or'' at the end of paragraph (10);
          (2) by redesignating paragraph (11) as paragraph (12); and
          (3) by inserting after paragraph (10) the following:
          ``(11)(A) knowingly take, recommend, or approve any personnel 
        action if the taking of such action would violate a veterans' 
        preference requirement; or
          ``(B) knowingly fail to take, recommend, or approve any 
        personnel action if the failure to take such action would 
        violate a veterans' preference requirement; or''.
  (b) Definition; Limitation.--Section 2302 of title 5, United States 
Code, is amended by adding at the end the following:
  ``(e)(1) For the purpose of this section, the term `veterans' 
preference requirement' means any of the following provisions of law:
          ``(A) Sections 2108, 3305(b), 3309, 3310, 3311, 3312, 3313, 
        3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 3352, 3363, 3501, 
        3502(b), 3504, and 4303(e) and (with respect to a preference 
        eligible referred to in section 7511(a)(1)(B)) subchapter II of 
        chapter 75 and section 7701.
          ``(B) Sections 943(c)(2) and 1784(c) of title 10.
          ``(C) Section 1308(b) of the Alaska National Interest Lands 
        Conservation Act.
          ``(D) Section 301(c) of the Foreign Service Act of 1980.
          ``(E) Sections 106(f), 7281(e), and 7802(5) of title 38.
          ``(F) Section 1005(a) of title 39.
          ``(G) Any other provision of law that the Director of the 
        Office of Personnel Management designates in regulations as 
        being a veterans' preference requirement for the purposes of 
        this subsection.
          ``(H) Any regulation prescribed under subsection (b) or (c) 
        of section 1302 and any other regulation that implements a 
        provision of law referred to in any of the preceding 
        subparagraphs.
  ``(2) Notwithstanding any other provision of this title, no authority 
to order corrective action shall be available in connection with a 
prohibited personnel practice described in subsection (b)(11). Nothing 
in this paragraph shall be considered to affect any authority under 
section 1215 (relating to disciplinary action).''.
  (c) Repeals.--
          (1) Provisions of title 10, united states code.--Section 
        1599c of title 10, United States Code, and the item relating to 
        such section in the table of sections at the beginning of 
        chapter 81 of such title are repealed.
          (2) Section 2302(a)(1) of title 5, united states code.--
        Subsection (a)(1) of section 2302 of title 5, United States 
        Code, is amended to read as follows:
  ``(a)(1) For the purpose of this title, `prohibited personnel 
practice' means any action described in subsection (b).''.
  (d) Savings Provision.--This section shall be treated as if it had 
never been enacted for purposes of any personnel action (within the 
meaning of section 2302 of title 5, United States Code) preceding the 
date of the enactment of this Act.

                      Short Summary of Legislation

    H.R. 240, as amended, strengthens veterans' preference and 
increases employment opportunities for veterans. It permits 
preference eligibles and certain other veterans to overcome 
artificial restrictions on the scope of competition for 
announced vacancies, establishes an effective redress system 
for veterans who believe their rights have been violated, makes 
knowing violations of veterans' preference laws a prohibited 
personnel practice, provides preference eligibles with 
increased protections during reductions in force (RIF), 
requires agencies to establish priority placement programs for 
employees affected by a RIF and apply veterans' preference when 
rehiring from the list, extends veterans' preference to certain 
positions at the White House and in the legislative and 
judicial branches of government, requires the Federal Aviation 
Administration to apply veterans' preference in reductions in 
force, and provides veterans' preference eligibility for 
service in Bosnia, Croatia, and the Former Yugoslav Republic of 
Macedonia.

               I. Background and Need for the Legislation

    In general, veterans preference laws give certain veterans 
preference in appointment to civilian employment with the 
Federal Government based upon their military service. Congress 
has long recognized that this is an earned benefit, not a gift.
    The statutory basis for today's veterans preference is the 
Veterans' Preference Act of 1944, as subsequently amended. 
Under that Act, veterans are given ``augmented scores'' of 5 or 
10 points, depending upon their status, in examinations for 
employment and retention preference in the event of a reduction 
in force. The Act also prohibited adverse actions against 
veterans without ``cause'' and required certain due process 
protections, such as notice and an opportunity to be heard, as 
well as appeals.
    The Subcommittee on the Civil Service has held two hearings 
related to this subject. The first hearing, which examined 
veterans' preference in the Federal workplace, was held during 
the 104th Congress on April 30, 1996. The second hearing was 
held on February 26, 1997 to examine H.R. 240.
    Testimony at these hearings revealed that veterans' 
preference in the Federal workplace is often ignored or 
circumvented and that its continued viability is threatened on 
several fronts.
    Veterans' employment in the Federal workforce is declining 
at a rapid rate. Indeed, the government is approaching 
historically low levels since the implementation of veterans' 
preference. Although 27.5% of the government's employees are 
veterans, as recently as 1984, veteran representation in the 
Federal work force was nearly 38%. Veterans have borne a 
disproportionate brunt of the government's downsizing. In part, 
this reflects the concentration of veterans in the very 
defense-related agencies that account for the vast majority of 
the recent downsizing. The Office of Personnel Management's 
(OPM) figures show that in September 1996, 65% of all veterans 
were employed in the three military departments and two other 
agencies. (In comparison, these agencies accounted for only 54% 
of the overall Federal civilian workforce.) It may also reflect 
the greater average age of veterans, who account for over 50% 
of all retirements from Federal civil service in the last five 
years. OPM's data also show that the percentage of veterans in 
the workforce of some agencies, such as the Department of 
Education and the Department of Health and Human services, is 
far below the governmentwide figure.

                    threats to veterans preference.

    Many in the veterans community have cited a variety of 
strategies recently used by agencies that threaten veterans' 
preference, whether that is their intended effect or not. A 
prime example is increased usage of single position competitive 
levels 1 in RIFs. In addition, evidence suggests a deep-
rooted resistance to veterans' preference in the bureaucracy. A 
1992 GAO study of veterans' preference revealed that 
certificates (the list of candidates from which agencies may 
hire) headed by a veteran entitled to preference were returned 
unused at almost 1.4 times the return rate of certificates 
headed by nonveterans.2 According to another GAO study, 
one quarter of selecting officials who returned a certificate 
unused to their personnel office in 1992 did so when they could 
not hire the candidate they wanted because a preference-
eligible 3 veteran was ranked higher.4
---------------------------------------------------------------------------
    \1\ A ``competitive level'' consists of all positions in the 
``competitive area'' that are essentially interchangeable. Jobs are 
considered interchangeable if they are in the same grade level and 
classification series and the individuals holding them could move from 
one position to another ``without any loss of productivity beyond that 
normally expected in the orientation of any new but fully qualified 
employee.'' A ``competitive area'' is the organizational unit and 
geographic area in which a RIF is conducted.
    \2\ GAO, Federal Hiring: Does Veterans' Preference Need Updating?, 
(March 1992), at 27. 70.6% of certificates headed by veterans were 
returned unused versus only 50.8% of those headed by nonveterans.
    \3\ ``Preference eligibles'' are veterans entitled to preference. 
The term is defined to mean disabled veterans, those who served in the 
military during wars, during specified periods of time, or in a 
campaign or expedition for which a campaign badge has been authorized. 
In addition, under certain circumstances, the spouses of disabled 
veterans, unmarried widows or widowers of veterans, and the mothers of 
individuals killed while in the military or of individuals with 
service-connected permanent and total disabilities are considered 
``preference eligibles.'' Special rules also apply to military 
retirees. 5 U.S.C. Sec. Sec. 2108, 3501.
    \4\ GAO, Federal Hiring: Reconciling Managerial Flexibility With 
Veterans' Preference, at 32 (June 1995).
---------------------------------------------------------------------------
    The use of single-position competitive levels poses a 
threat to veterans' preference because it effectively 
eliminates the preference eligible's ability to compete for 
retention at his or her grade level. The case of John Davis, a 
decorated Vietnam veteran who testified at the subcommittee's 
April 30, 1996 hearing, provides an example. Mr. Davis was 
placed in a single-position competitive level during a RIF at 
the Army Corps of Engineers, and consequently released from his 
position. Many in the veterans' community believe the use of 
this device undercut Mr. Davis's veterans' preference rights, 
even though both the Merit Systems Protection Board and the 
U.S. Court of Appeals for the Federal Circuit upheld the 
agency's action.
    On occasions the use of single-position competitive levels 
is appropriate because positions are so truly unique that 
employees cannot move between them without disrupting 
productivity. However the potential for abuse is always 
present, and agencies can use them to target individual 
employees and circumvent veterans' preference. Unfortunately, 
use of this device has proliferated in recent years. For 
example, in a RIF recently conducted by the U.S. Geological 
Survey 97.2% of 1,100 scientific or technical positions were 
placed in unique competitive levels.
    The Committee also believes it is necessary to provide 
eligible veterans with stronger rights to move into other 
positions if they are released from their own jobs during a 
RIF. Again, the John Davis cases illustrates why such increased 
protection is necessary. In that case, the evidence shows that 
before it conducted the RIF the agency actually restructured 
some positions to allow other employees to qualify for them and 
escape the RIF.5
---------------------------------------------------------------------------
    \5\ Davis v. Department of the Army, DC-0351-93-0543-I-2, initial 
decision at 15 (MSPB February 4, 1994).
---------------------------------------------------------------------------
    This legislation addresses these problems by making it more 
difficult for agencies to place preference eligibles in single-
position competitive levels. Under it, preference eligibles 
cannot be placed in such a competitive level if by reason of 
their education, training, or experience a reasonable person 
could conclude they would be able successfully to perform 
another job at the same grade and in the same competitive level 
within 150 days. In such cases, the preference eligible is to 
be placed in another competitive level for which he or she 
qualifies. And if the preference eligible qualifies for more 
than one competitive level, he or she is entitled to be placed 
in the competitive level with the most positions. In addition, 
the legislation provides preference eligibles with enhanced 
assignment rights to other positions and requires agencies to 
establish priority placement programs for preference eligibles 
who are separated or scheduled to be separated as a result of a 
RIF.

                       Equal Access for Veterans

    Not all of those who have served in the military are 
entitled to veterans preference, even though they are commonly 
thought of as veterans. Only those who meet the statutory 
definition of ``preference eligible'' are entitled to veterans 
preference. Today, most become eligible for veterans' 
preference by receiving a campaign badge. Consequently, many 
who have served in the armed forces do not have an advantage 
when competing for Federal jobs. Even worse, however, because 
agencies frequently restrict competition for positions to 
``status'' candidates (primarily those who are already Federal 
civilian employees) or, more narrowly, to those in the agency's 
own workforce, these veterans are excluded from competition for 
many government jobs.
    The Committee believes this is wrong. In his memorial day 
speech at Arlington National Cemetery on May 27, 1996, 
President Clinton observed, ``As we honor the brave sacrifices 
in battle that grace our nation's history, let us also remember 
to honor those who served in times of peace, who preserve the 
peace, protect our interests and project our values. Though 
they are the best-trained, best-equipped military in the world, 
they, too, face their share of dangers.'' Accordingly, the 
Committee believes that it is incumbent upon the Federal 
Government to recognize the valuable Federal service those 
veterans have performed.
    In order to address this problem, the legislation provides 
that preference eligibles and other veterans who have served 
honorably for at least three years cannot be prevented from 
competing for government jobs because they do not have 
``status'' or are not employees of the hiring agency. This 
section of the bill (section 2) does not confer a preference on 
anyone not otherwise entitled to one. Agencies are also 
permitted to hire from a re-employment priority list consisting 
solely of surplus and displaced employees without outside 
competition.
    This bill does not interfere with collectively bargained 
job bidding and assignment procedures in the Postal Service. It 
is not the Committee's intent to interfere with the 
reassignment or transfer rights of postal employees. The 
Committee recognizes that such employees have the right to 
transfer to new locations, and that individuals who suffer 
involuntary reassignment continue to be protected under the 
respective collective-bargaining agreements. The Committee also 
recognizes that postal employees who suffer job-related 
disabilities have the right to ``limited duty'' positions, and 
individuals who are injured off the job have the right to 
``light duty'' positions. This bill is not intended to impair 
or diminish these rights.

                 Lack of an adequate redress mechanism

    Compounding the concerns of many veterans and veterans 
groups is the lack of an adequate redress mechanism for 
veterans whose rights are violated. There is a widespread 
consensus in the veterans' community that existing redress 
procedures do not provide real relief to affected veterans. 
Indeed, testimony at the subcommittee's hearings identified 
this as the central defect in veterans' preference today.
    H.R. 240 corrects this problem by creating an effective, 
yet user-friendly redress system for veterans. Veterans who 
believe their veterans' preference rights or their right to 
compete for positions under this Act have been violated may 
file a complaint with the Secretary of Labor. The Secretary is 
to investigate and attempt to resolve the complaint under 
procedures established in the Uniformed Services Employment and 
Reemployment Rights Act of 1994. The complainant may file an 
appeal with the Merit Systems Protection Board if the Secretary 
is unable to resolve the complaint or to do so within 60 days. 
The veteran is required to exhaust administrative remedies 
before the Board for a period of at least 120 days. However, 
after 120 days, but before the Board has issued a judicially 
reviewable decision on the merits of the case, the veteran may 
terminate the administrative proceeding and file a complaint in 
an appropriate United States district court. Under this 
procedure, a veteran can escape the administrative process if 
it becomes mired down, but cannot engage in forum shopping or 
obtain more than ``one bite at the apple.''
    In addition, under this bill knowing violations of 
veterans' preference become a prohibited personnel practice for 
the purpose of disciplinary actions. This authorizes the 
Special Counsel to file a complaint against an employee who is 
alleged to have knowingly violated veterans' preference laws 
with the Merit Systems Protection Board. If the Merit Systems 
Protection Board sustains these allegations, the employee is 
subject to penalties that include removal, suspension, or a 
$1,000 fine.

                             Other concerns

    Many positions at the White House and in the legislative 
and judicial branches of government are not covered by current 
veterans' preference laws. The Committee believes this is 
wrong. The debt our Nation owes to those who have fought its 
battles should be acknowledged by all branches of government. 
Accordingly, the legislation applies veterans' preference to 
nonpolitical positions in the White House and the legislative 
branch, as well as to many positions in the judicial branch.
    Under the Department of Transportation and Related Agencies 
Appropriations Act of 1996, the Federal Aviation Administration 
was permitted to establish an alternative personnel system. 
Although that Act required the FAA to follow veterans' 
preference in hiring, it did not require it to do so in RIFs. 
This has been of great concern to many veterans at the FAA, and 
the Committee believes there is no reason to deprive those 
veterans of the preference in RIFs they have earned. 
Accordingly, the legislation requires the FAA to observe 
veterans' preference in RIFs.
    Finally, this legislation also extends veterans' preference 
to those who serve in Bosnia, Croatia, and the Former Yugoslav 
Republic of Macedonia.

             II. Legislative Hearings and Committee Actions

    H.R. 240 was introduced on January 7, 1997 by the Honorable 
John L. Mica (R-FL), Chairman of the House Subcommittee on the 
Civil Service. The bill was referred to the Committee on 
Government Reform and Oversight on January 7, 1997, and it was 
referred to the Subcommittee on the Civil Service on January 
22, 1997. The subcommittee held a hearing and mark up on 
February 26, 1997. No amendments were offered, and the measure 
was ordered favorably reported to the full Committee by a voice 
vote. On March 12, 1997, the Committee on Government Reform and 
Oversight met to consider the bill. Representative Mica offered 
an amendment in the nature of a substitute, which was approved 
by voice vote. The Committee favorably reported the bill, as 
amended, to the full House by voice vote.

             III. Committee Hearings and Written Testimony

    On February 26, 1997, the Subcommittee on the Civil Service 
held formal hearings on H.R. 240. Witnesses at that hearing 
were the Honorable James B. King, Director of the Office of 
Personnel Management; Emil Naschinski, Assistant Director, 
National Economics Commission, The American Legion; Sidney 
Daniels, Director, National Veterans Employment Assistance 
Service, Veterans of Foreign Wars of the United States; Charles 
L. Calkins, National Executive Secretary, The Fleet Reserve 
Association; Larry D. Rhea, Deputy Director of Legislative 
Affairs, Non Commissioned Officers Association of the United 
States of America. In addition, a written statement was 
submitted by Ronald W. Drach, National Employment Director, 
Disabled American Veterans.
    Director King emphasized the Administration's strong 
support for the principle of veterans' preference and agreed 
that ``[s]trengthening employment opportunities for veterans is 
a worthy goal.'' He lauded the success of the Clinton 
Administration in hiring veterans during a time of government 
downsizing. Director King also indicated that he had suggested 
to veterans's service organizations an alternative to H.R. 
240's RIF provisions. That alternative would have allowed 
unlimited ``bumping'' and ``retreating'' rights for veterans 
only. However, he also indicated that he would support any 
approach that the organizations believed would work towards the 
goal of strengthening veterans' preference in RIFs. Finally, 
Director King recommended that Congress allow OPM sufficient 
time to promulgate regulations implementing any changes in RIF 
laws and to prevent against the disruption of RIFs that are 
underway on the effective date of the legislation.
    Mr. Naschinski testified that The American Legion supports 
H.R. 240, which he called ``long overdue.'' He emphasized the 
importance of the bill's redress mechanism to veterans in 
providing an ``effective, efficient and user friendly'' appeals 
system for veterans. The American Legion, according to Mr. 
Naschinski, ``firmly believes that the major problem with 
veterans' preference is that veterans do not have an adequate 
redress system for instances of discrimination.'' The American 
Legion also supports the bill because it would protect veterans 
from such unfair personnel practices as single-person 
competitive levels during RIFs and would provide veterans with 
enhanced opportunities to find another job if RIFed. Mr. 
Naschinski also took issue with the claim that veterans' 
preference is unfair to women and minorities, pointing out that 
it is completely neutral with regard to the veterans' gender 
and ethnicity. He also testified that the percentage of 
minorities serving in the armed forces is double the percentage 
of minorities in the population. Finally, Mr. Naschinski 
emphasized that veterans are among the more stable and 
productive members of society, being familiar with leadership 
and having an excellent work record.
    Mr. Daniels testified that the VFW strongly supports H.R. 
240, which is a priority item on the organization's legislative 
agenda for 1997. In the view of the VFW, this legislation is 
especially important to veterans who may be facing job loss due 
to continuing downsizing of the Federal Government. In 
particular, the VFW supports the legislation's curbs on the use 
of single-position competitive levels and enhanced assignment 
rights for preference eligibles, which will discourage the use 
of ``designer RIFs'' that threaten veterans' preference. Mr. 
Daniels also testified that the equal access provisions of the 
bill will greatly assist many highly qualified veterans who are 
potential candidates for Federal employment to apply and 
compete for Federal jobs. Allowing qualified veterans to 
compete for jobs that are currently open only to insiders, he 
emphasized, will not only result in more women and minority 
veterans obtaining employment, but also increase the pool of 
highly qualified candidates and enhance the overall quality of 
the Federal workforce. The VFW also fully supports the redress 
mechanism in the legislation and making violations of veterans' 
preference a prohibited personnel practice in all Federal 
agencies.
    Mr. Calkins testified that the Fleet Reserve Association 
supports this legislation because it reinforces the Nation's 
commitment to its veterans. He testified that while some 
Federal agencies support veterans' preference in principle, 
they circumvent it in practice and answer to no one. He pointed 
out that an unsuccessful applicant who suspects discrimination 
based on race, sex, or religion can appeal to the Equal 
Employment Opportunity Commission for a remedy, but a bypassed 
veteran now has no similar recourse. The Fleet Reserve 
Association also supports making violations of veterans' 
preference a prohibited personnel practice for disciplinary 
purposes because it strengthens the enforcement of veterans' 
preference laws. Mr. Calkins also rebutted the argument that 
veterans' preference is unfair to women and minorities by 
pointing out that more women and minorities are now recruited 
for the armed services and that women are no longer restricted 
to traditional roles outside of the combat theater.
    Mr. Rhea testified that enacting this legislation is a high 
priority of the Non Commissioned Officers Association (NCOA). 
The NCOA believes this bill will provide key ingredients that 
have been missing from veterans' preference law for 50 years, 
an adequate and fair enforcement mechanism and protection for 
veterans during RIFs. Veterans' preference, Mr. Rhea testified, 
has become an `` `unfilled earned right' simply because 
veterans' preference laws lack an effective enforcement 
mechanism.'' He also emphasized that veterans' preference 
creates a preference based upon honorable military service for 
veterans of either sex.
    In his written statement, Mr. Drach emphasized the support 
of the Disabled American Veterans for the legislation's equal 
access provisions and redress mechanism. With respect to the 
equal access provision, he pointed out that veterans were in 
fact Federal employees while in the military and made many 
personal sacrifices to be a Federal employee. Accordingly, the 
legislation appropriately prevents agencies from barring many 
veterans from competing for civilian jobs simply because they 
are not currently civilian employees. He also argued that 
neither veterans nor veterans' service organizations have ever 
had access to a meaningful redress system and characterized the 
redress mechanism established in this bill as an ``extremely 
important provision.''
    During the previous Congress the subcommittee held a 
hearing on April 30, 1996 to examine whether the employment 
preferences accorded veterans by law are being faithfully 
applied by the Federal Government and ways in which 
opportunities can be improved. The testimony from that hearing 
is described in House Report 104-675.

  IV. Explanation of the Bill as Reported: Section-by-Section Analysis

                         Section 1. Short Title

    The short title of this Act is ``The Veterans' Employment 
Opportunities Act of 1997.''

                  Section 2. Equal Access for Veterans

    Subsection (a) amends 5 U.S.C. Sec. 3304 by adding a new 
subsection (f), which provides that a preference eligible or a 
veteran who has been honorably discharged after three years' 
service in the armed forces may not be barred from competition 
for announced vacancies in the competitive or excepted service 
because he or she has not acquired competitive status or is not 
an employee of a particular agency. However, agencies are not 
prohibited from filling vacant positions solely from a priority 
placement list consisting of former employees who were 
separated from the agency due to a reduction in force and 
surplus employees.
    Subsection (b) amends 5 U.S.C. Sec. 3327 to require OPM to 
maintain and publicize to state employment services all 
vacancies for which a veteran may apply under this section.
    Subsection (c) amends 5 U.S.C. Sec. 3330(b) to require OPM 
to maintain a comprehensive governmentwide list of vacant 
positions for which veterans may apply and to make clear that 
OPM may contract for this function.
    Subsection (d) makes clear that the provisions of this 
section do not interfere with the filling of vacancies under 
collectively bargained job bidding and assignment procedures in 
the Postal Service. Such collectively bargained rights of 
postal employees as the right to transfer to new locations, the 
right to be protected under the respective collective-
bargaining agreements in the event of an involuntary 
reassignment, rights to ``limited duty'' or ``light duty'' 
positions, and promotions of part time flexible employees are 
not impaired or diminished.

 Section 3. Special Protections for Preference Eligibles in Reductions 
                                in Force

    Subsection (a). This subsection provides special 
protections for preference eligible employees when their agency 
is conducting a RIF. Because Congress recognizes that single-
position competitive levels pose a threat to veterans' 
preference in RIFs, agencies are prohibited from placing any 
position occupied by a preference eligible in such a 
competitive level if the preference eligible is qualified (as 
defined in this Act) to perform the essential functions of any 
other position at the same grade and in the same competitive 
area. In such cases the preference eligible is entitled to be 
placed in another competitive level, and if the preference 
eligible is qualified for more than one other competitive 
level, he or she is entitled to be placed in the competitive 
level containing the most positions.
    Preference eligibles are also provided enhanced assignment 
rights. A preference eligible whose current or most recent 
performance rating is fully successful or better shall have 
assignment rights to:
          (1) any position for which he or she is qualified (as 
        defined in this Act) at the same grade level within the 
        agency conducting the RIF that is in the commuting area 
        and that is currently held by someone (other than 
        another preference eligible) who was placed in the 
        position within six months before the reduction in 
        force if, within 12 months prior to such placement, 
        that person had been employed in the same competitive 
        area as the preference eligible;
          (2) any position in the competitive area for which 
        the preference eligible is qualified (as defined in 
        this Act) and that is then held by an individual, other 
        than another preference eligible, who was placed in the 
        position within 6 months before the RIF; or
          (3) any position in the competitive area that is not 
        more than 3 grades or pay levels (5 grades or pay 
        levels in the case of a preference eligible with a 
        service-connected disability of 30% or more) below the 
        position from which the preference eligible was 
        released. The special test for determining 
        qualifications defined in this Act does not apply in 
        this situation.
    These assignment rights are in addition to any assignment 
rights positions prescribed by regulations issued by the Office 
of Personnel Management.
    For the purposes of determining whether a position may be 
put in a single-position competitive level or certain 
assignment rights of a preference eligible, the preference 
eligible shall be considered qualified for another position if 
by reason of experience, training, or education a reasonable 
person could conclude that the preference eligible would be 
able to perform the essential functions of the position 
successfully within a period of 150 days.
    A preference eligible may challenge the classification of 
any position to which he asserts assignment rights in an action 
before the Merit Systems Protection Board (MSPB).
    Agencies are also required to establish agency wide 
priority placement programs for employees who are scheduled to 
be separated or are actually separated by a RIF and whose 
current or most recent performance rating was at least fully 
successful or the equivalent. The agency may not fill any 
vacancy by appointment or transfer of any person from outside 
or inside the agency (other than surplus or displaced 
employees) if there is a qualified employee on the reemployment 
priority placement list. Veterans'' preference must be applied 
in filling positions from the list. An individual may remain on 
the list for a maximum of 2 years, but may be removed earlier 
under conditions specified in this section. These conditions 
include the rejection of a bona fide offer of employment.
    Subsection (b). The amendments made by this section apply 
to RIFs taking effect more than 90 days (1 year in the case of 
the Department of Defense) after the date of enactment. To 
avoid disruption of ongoing RIFs, the amendments will not apply 
to reductions in force for which the agency has issued specific 
written notices in accordance with 5 U.S.C. Sec. 3502(D)(1)(A) 
to employees in a competitive area before the effective dates 
specified in this subsection.

                Section 4. Improved Redress for Veterans

    This section amends chapter 33 of title 5 by adding three 
new sections (sections 3331-3333) to create a redress system 
that is user-friendly, yet effective. This redress mechanism 
covers preference eligibles and, for violations of the right to 
compete created in section 2 of this Act, individuals honorably 
discharged from the armed forces after three years'' service. 
Under this system, the individual first must file a complaint 
with the Secretary of Labor within 60 days of the alleged 
violation. The Secretary will investigate and attempt to 
resolve the complaint in accordance with provisions of the 
Uniformed Services Employment and Reemployment Rights Act of 
1994, 38 U.S.C. Sec. Sec. 4322(a)-(e)(1), 4326. The individual 
may file an appeal with the MSPB if the Secretary is unable to 
resolve the complaint within 60 days or if the Secretary 
notifies the individual that he is unable to resolve the 
complaint. An individual who elects to file an appeal with the 
MSPB must notify the Secretary of this election, and the 
Secretary is to discontinue his efforts to investigate or 
resolve the complaint.
    An individual who files an appeal with the MSPB under this 
section must exhaust that remedy for at least 120 days. At any 
time after that point, but before the MSPB issues a judicially 
reviewable decision on the merits, the individual may terminate 
the administrative proceeding and file an action with the 
appropriate United States district court.
    An individual who prevails is entitled to ``make-whole'' 
relief and, if the MSPB or district court determines that the 
agency's violation was willful, liquidated damages equal to the 
amount of back pay awarded. The MSPB or district court shall 
award reasonable attorney's fees and litigation expenses to an 
individual who prevails.

              Section 5. Extension of Veterans' Preference

    This section extends veterans' preference to certain 
positions in the judicial branch and to non-political jobs at 
the White House and in the legislative branch.
    Subsection (a) amends 5 U.S.C. Sec. 2108 to require the 
General Accounting Office to apply veterans' preference in 
hiring. (GAO is already covered by veterans' preference with 
respect to RIFs.)
    Subsection (b) amends title 3 of the United States Code by 
adding a new section 115 to positions at the White House. 
Positions that are equivalent to positions in the Senior 
Executive Service are exempt, as are positions that the 
President certifies are confidential or policy-making positions 
or for which political affiliation or political philosophy is 
otherwise an important qualification.
    Subsection (c) extends veterans' preference to positions in 
the legislative branch. Positions for which the appointment is 
made by the President with the advice and consent of the 
Senate, appointments by Members of Congress, and positions 
equivalent to Senior Executive Service positions are exempt. 
The Board of Directors of the Office of Compliance is required 
to establish a redress system for the legislative branch that 
is substantially similar to the system established under 
section 4 of this Act.
    Subsection (d) applies veterans' preference to positions in 
the judicial branch. It exempts positions for which the 
appointment is made by the President with the advice and 
consent of the Senate, judicial officers, appointments as law 
clerks or secretaries to judges or Justices, and positions 
equivalent to Senior Executive Service positions. The Judicial 
Conference, in consultation with certain veterans' service 
organizations, is required to prescribe regulations providing 
veterans with preferences in employment and RIFs similar to 
those in the executive branch and to establish a redress system 
for the judicial branch that is similar to the system 
established under section 4 of this Act. These regulations are 
to be submitted to appropriate congressional committees within 
5 months of the date of enactment of this Act and are to take 
effect one month later.

      Section 6. Veterans' Preference Required for RIFs in the FAA

    This section amends section 347(b) of the Department of 
Transportation and Related Agencies Appropriations Act, 1996 
(109 Stat. 460) to require the Federal Aviation Administration 
to apply veterans' preference in reductions in force. Current 
law requires the FAA to apply veterans' preference in hiring.

Section 7. Veterans' Preference for Service in Bosnia, Croatia, or the 
                 Former Yugoslav Republic of Macedonia

    This section provides veterans' preference for service in 
Bosnia, Croatia, and the Former Yugoslav Republic of Macedonia 
while such areas are considered a ``qualified hazardous duty 
area.''

  Section 8. Violation of Veterans' Preference a Prohibited Personnel 
                   Practice for Disciplinary Actions

    This section permits the Special Counsel to bring a 
disciplinary action before the Merit Systems Protection Board 
under 5 U.S.C. Sec. 1215 against any Federal employee who 
knowingly violates veterans' preference laws.

                       V. Compliance With Rule XI

    Pursuant to rule XI, clause 2(l)(3)(A) of the Rules of the 
House of Representatives, under the authority of rule X, clause 
2(b)(1) and clause 3(f), the results and findings from 
committee oversight activities are incorporated in the bill and 
this report.

                  VI. Budget Analysis and Projections

    H.R. 240, as amended, provides for no new authorization, 
budget authority, or tax expenditures. Consequently, the 
provisions of section 308(a)(1) of the Congressional Budget Act 
of 1974 are not applicable.

         VII. Cost Estimate of the Congressional Budget Office

                                     U.S. Congress,
                               Congressional Budget Office,
                                    Washington, DC, March 18, 1997.
Hon. Daniel Burton,
Chairman, Committee on Government Reform and Oversight, House of 
        Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 240, the Veterans' 
Employment Opportunities Act of 1997.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is John R. 
Righter.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 240--Veterans' Employment Opportunities Act of 1997

    CBO estimates that enacting this bill would increase 
personnel and management costs of the federal government, 
though we cannot estimate the amount of the added costs. For 
most agencies, any increase in spending would be subject to the 
availability of appropriated funds. The bill could also 
increase direct spending by agencies not funded through annual 
appropriations. Therefore, pay-as-you-go procedures would apply 
to the bill. With the possible exception of costs for the U.S. 
Postal Service, the bill's impact on direct spending is not 
likely to be significant. Spending by the Postal Service, 
however, is classified as off-budget and is not subject to pay-
as-you-go procedures.
    H.R. 240 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act of 1995 
and would not affect the budgets of state, local, or tribal 
governments.
    H.R. 240 would strengthen and broaden the applicability of 
a set of laws popularly known as veterans' preference, which 
afford certain veterans preferential treatment in obtaining and 
keeping federal employment. For instance, the bill would 
strengthen the ability of veterans to seek redress for any 
alleged violations. The bill also would provide a federal 
agency from excluding a veteran who was honorably discharged 
after three years of service from competing for announced 
vacancies because that veteran does not already work for the 
hiring agency or have competitive status. Finally, the bill 
would extend veterans' preference to certain positions in the 
judicial branch and to non-political positions at the White 
House and in the legislative branch.
    Several provisions of H.R. 240 would increase the costs to 
the federal to administer and enforce the laws governing 
veterans' preference. However, because we have no way of 
predicting the number of veterans who would be affected by the 
bill's provisions, particularly the number of veterans who 
might seek redress under the bill's expanded procedures, CBO 
cannot estimate the amount of these additional costs. Areas of 
potential costs resulting from the bill are described below.
    The largest potential budgetary impact of the bill would 
result from provisions that would allow veterans to appeal 
hiring and reduction-in-force decisions to, first, the Merit 
Systems Protection Board (MSPB) and, then, to a district court, 
and that would increase the amount of redress that an eligible 
veteran could receive for an affirmed violation. By expanding 
the number of veterans eligible to appeal hiring decisions, 
enacting H.R. 240 could significantly increase the workload--
and hence, the expenses--of the Department of Labor, which 
would receive the initial complaints, as well as the MSPB and 
the federal judiciary, which would handle any subsequent 
appeals.
    In cases where the complainant prevails, the bill would 
require that the individual receive reasonable attorney fees, 
expert witness fees, and other litigation expenses. Currently, 
successful complainants are awarded only attorney fees. In 
cases where a violation is deemed as willful, H.R. 240 also 
would require the MSPB or district court to award damages in 
addition to any lost wages or benefits. The amount of damages 
would be limited to the amount of back pay owed by the agency. 
Thus, H.R. 240 would likely result in the appeal of more cases, 
particularly those related to grievances over hiring decisions, 
and in the awarding of higher monetary judgments. CBO has no 
basis for estimating the number or cost of these additional 
appeals.
    Second, the bill would require agencies to ensure that 
eligible veterans, as defined by the bill, are not excluded 
from competing for announced vacancies because they do not 
already work for the hiring agency or have competitive status. 
The provision would result in agencies adding to the Federal 
Job Opportunities List positions that otherwise would be filled 
by employees who work for the agency or elsewhere in the 
federal government. Thus, the bill would require agencies to 
transmit additional information to the Office of Personnel 
Management and would force agencies to delay hiring individuals 
for positions that they typically fill quickly. The extra time 
needed to provide veterans with a reasonable opportunity to 
apply and to process and consider additional applicants could 
lengthen the time positions remain vacant, and could impair the 
ability of some agencies to administer their programs and 
operations. For some agencies, this delay could result in extra 
overtime or contact costs; for others, the delay could reduce 
the amount spent on salaries and expenses.
    Finally, the bill would extend veterans' preference to 
certain positions in the judicial branch and to non-political 
positions at the White House and the legislative branch. For 
those agencies, such as CBO, the Library of Congress, and the 
Capitol Police, that support the Congress, such an application 
would be difficult to implement. Because the employees of these 
agencies are not part of the Civil Service and since the 
agencies do not administer a test or use a numerical rating 
system that lends itself to factoring in the additional points 
required by law for preference-eligible veterans, it is 
uncertain how these agencies would comply with the bill. If the 
extension of veterans' preference resulted in the agencies 
instituting a new system for judging and hiring applicants, the 
associated costs could be significant. For the judicial branch, 
the bill would require that the Judicial Conference of the 
United States prescribe regulations that are similar to those 
governing the executive branch. The bill also would direct the 
Office of Compliance and the Judicial Conference of the United 
States to establish procedures similar to those available to 
executive branch employees. Thus, the agencies could also face 
new, potentially costly litigation related to grievances filed 
under this provision.
    The CBO staff contact for this estimate is John R. Righter. 
The estimate was approved by Robert A. Sunshine, Deputy 
Assistant Director for Budget Analysis.

      VIII. Specific Constitutional Authority for This Legislation

    Clauses 1, 12, and 18 of Article 1, section 8 of the 
Constitution grant Congress the power to enact this law.

       IX. Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                      TITLE 5, UNITED STATES CODE

          * * * * * * *

                          PART III--EMPLOYEES

          * * * * * * *

                     Subpart A--General Provisions

          * * * * * * *

                        CHAPTER 21--DEFINITIONS

          * * * * * * *

Sec. 2108. Veteran; disabled veteran; preference eligible

  For the purpose of this title--
          (1) ``veteran'' means an individual who--
                  (A) served on active duty in the armed forces 
                during a war, in a campaign or expedition for 
                which a campaign badge has been authorized, 
                during a military operation in a qualified 
                hazardous duty area (within the meaning of the 
                first 2 sentences of section 1(b) of Public Law 
                104-117) and in accordance with requirements 
                that may be prescribed in regulations of the 
                Secretary of Defense, during the period 
                beginning April 28, 1952, and ending July 1, 
                1955; or
          * * * * * * *
          (3) ``preference eligible'' means, except as provided 
        in paragraph (4) of this section--
                  (A)  * * *
          * * * * * * *
        but does not include applicants for, or members of, the 
        Senior Executive Service, the Defense Intelligence 
        Senior Executive Service, the Senior Cryptologic 
        Executive Service, [the Federal Bureau of Investigation 
        and Drug Enforcement Administration Senior Executive 
        Service, or the General Accounting Office;] or the 
        Federal Bureau of Investigation and Drug Enforcement 
        Administration Senior Executive Service;
          * * * * * * *

                  CHAPTER 23--MERIT SYSTEM PRINCIPLES

          * * * * * * *

Sec. 2302. Prohibited personnel practices

  [(a)(1) For purposes of this title, ``prohibited personnel 
practice'' means the following:
          [(A) Any action described in subsection (b) of this 
        section.
          [(B) Any action or failure to act that is designated 
        as a prohibited personnel action under section 1599c(a) 
        of title 10.]
  (a)(1) For the purpose of this title, ``prohibited personnel 
practice'' means any action described in subsection (b).
          * * * * * * *
  (b) Any employee who has authority to take, direct others to 
take, recommend, or approve any personnel action, shall not, 
with respect to such authority--
          (1) * * *
          * * * * * * *
          (10) discriminate for or against any employee or 
        applicant for employment on the basis of conduct which 
        does not adversely affect the performance of the 
        employee or applicant or the performance of others; 
        except that nothing in this paragraph shall prohibit an 
        agency from taking into account in determining 
        suitability or fitness any conviction of the employee 
        or applicant for any crime under the laws of any State, 
        of the District of Columbia, or of the United States; 
        [or]
          (11)(A) knowingly take, recommend, or approve any 
        personnel action if the taking of such action would 
        violate a veterans' preference requirement; or
          (B) knowingly fail to take, recommend, or approve any 
        personnel action if the failure to take such action 
        would violate a veterans' preference requirement; or
          [(11)] (12) take or fail to take any other personnel 
        action if the taking of or failure to take such action 
        violates any law, rule, or regulation implementing, or 
        directly concerning, the merit system principles 
        contained in section 2301 of this title.
This subsection shall not be construed to authorize the 
withholding of information from the Congress or the taking of 
any personnel action against an employee who discloses 
information to the Congress.
          * * * * * * *
  (e)(1) For the purpose of this section, the term ``veterans 
preference requirement'' means any of the following provisions 
of law:
          (A) Sections 2108, 3305(b), 3309, 3310, 3311, 3312, 
        3313, 3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 
        3352, 3363, 3501, 3502(b), 3504, and 4303(e) and (with 
        respect to a preference eligible referred to in section 
        7511(a)(1)(B)) subchapter II of chapter 75 and section 
        7701.
          (B) Sections 943(c)(2) and 1784(c) of title 10.
          (C) Section 1308(b) of the Alaska National Interest 
        Lands Conservation Act.
          (D) Section 301(c) of the Foreign Service Act of 
        1980.
          (E) Sections 106(f), 7281(e), and 7802(5) of title 
        38.
          (F) Section 1005(a) of title 39.
          (G) Any other provision of law that the Director of 
        the Office of Personnel Management designates in 
        regulations as being a veterans' preference requirement 
        for the purposes of this subsection.
          (H) Any regulation prescribed under subsection (b) or 
        (c) of section 1302 and any other regulation that 
        implements a provision of law referred to in any of the 
        preceding subparagraphs.
  (2) Notwithstanding any other provision of this title, no 
authority to order corrective action shall be available in 
connection with a prohibited personnel practice described in 
subsection (b)(11). Nothing in this paragraph shall be 
considered to affect any authority under section 1215 (relating 
to disciplinary action).
          * * * * * * *

                  Subpart B--Employment and Retention

          * * * * * * *

           CHAPTER 33--EXAMINATION, SELECTION, AND PLACEMENT

       SUBCHAPTER I--EXAMINATION, CERTIFICATION, AND APPOINTMENT

3301.  Civil service; generally.
3302.  Competitive service; rules.
          * * * * * * *
3330a. Administrative redress.
3330b. Judicial redress.
3330c. Remedy.
          * * * * * * *

       SUBCHAPTER I--EXAMINATION, CERTIFICATION, AND APPOINTMENT

          * * * * * * *

Sec. 3304. Competitive service; examinations

  (a) * * *
          * * * * * * *
  (f)(1) No preference eligible, and no individual (other than 
a preference eligible) who has been separated from the armed 
forces under honorable conditions after 3 or more years of 
active service, shall be denied the opportunity to compete for 
an announced vacant position within an agency, in the 
competitive service or the excepted service, by reason of--
          (A) not having acquired competitive status; or
          (B) not being an employee of such agency.
  (2) Nothing in this subsection shall prevent an agency from 
filling a vacant position (whether by appointment or otherwise) 
solely from individuals on a priority placement list consisting 
of individuals who have been separated from the agency due to a 
reduction in force and surplus employees (as defined under 
regulations prescribed by the Office).
          * * * * * * *

Sec. 3327. Civil service employment information

  (a) * * *
  (b) Subject to such regulations as the Office may issue, each 
agency shall promptly notify the Office and the employment 
offices of the United States Employment Service of--
          (1) each vacant position in the agency which is in 
        the competitive service or the Senior Executive Service 
        and for which the agency seeks applications from 
        persons outside the Federal service, [and]
          (2) each vacant position in the agency for which 
        competition is restricted to individuals having 
        competitive status or employees of such agency, 
        excluding any position under paragraph (1), and
          [(2)] (3) the period during which applications will 
        be ac- cepted.
As used in this subsection, ``agency'' means an agency as 
defined in section 5102(a)(1) of this title other than an 
agency all the positions in which are excepted by statute from 
the competitive service.
  (c) Any notification provided under this section shall, for 
all positions under subsection (b)(1) as to which section 
3304(f) applies and for all positions under subsection (b)(2), 
include a notation as to the applicability of section 3304(f) 
with respect thereto.
  (d) In consultation with the Secretary of Labor, the Office 
shall submit to Congress and the President, no less frequently 
than every 2 years, a report detailing, with respect to the 
period covered by such report--
          (1) the number of positions listed under this section 
        during such period;
          (2) the number of preference eligibles and other 
        individuals described in section 3304(f)(1) referred to 
        such positions during such period; and
          (3) the number of preference eligibles and other 
        individuals described in section 3304(f)(1) appointed 
        to such positions during such period.
          * * * * * * *

Sec. 3330. Government-wide list of vacant positions

  (a) * * *
  [(b) The Office of Personnel Management shall establish and 
keep current a comprehensive list of all announcements of 
vacant positions in the competitive service within each agency 
that are to be filled by appointment for more than one year and 
for which applications are being (or will soon be) accepted 
from outside the agency's work force.]
  (b) The Office of Personnel Management shall cause to be 
established and kept current--
          (1) a comprehensive list of all announcements of 
        vacant positions (in the competitive service and the 
        excepted service, respectively) within each agency that 
        are to be filled by appointment for more than 1 year 
        and for which applications are being or will soon be 
        accepted from outside the agency's work force; and
          (2) a comprehensive list of all announcements of 
        vacant positions within each agency for which 
        applications are being or will soon be accepted and for 
        which competition is restricted to individuals having 
        competitive status or employees of such agency, 
        excluding any position required to be listed under 
        paragraph (1).
  (c) Included for any position listed shall be--
          (1) * * *
          (2) application procedures, including the period 
        within which applications may be submitted and 
        procedures for obtaining additional information; [and]
          (3) for all positions under subsection (b)(1) as to 
        which section 3304(f) applies and for all positions 
        under subsection (b)(2), a notation as to the 
        applicability of section 3304(f) with respect thereto; 
        and
          [(3)] (4) any other information which the Office 
        considers appropriate.
  (d) [The list] Each list under subsection (b) shall be 
available to members of the public.
          * * * * * * *

Sec. 3330a. Administrative redress

  (a)(1) Any preference eligible or other individual described 
in section 3304(f)(1) who alleges that an agency has violated 
such individual's rights under any statute or regulation 
relating to veterans' preference, or any right afforded such 
individual by section 3304(f), may file a complaint with the 
Secretary of Labor.
  (2) A complaint under this subsection must be filed within 60 
days after the date of the alleged violation, and the Secretary 
shall process such complaint in accordance with sections 4322 
(a) through (e)(1) and 4326 of title 38.
  (b)(1) If the Secretary of Labor is unable to resolve the 
complaint within 60 days after the date on which it is filed, 
the complainant may elect to appeal the alleged violation to 
the Merit Systems Protection Board in accordance with such 
procedures as the Merit Systems Protection Board shall 
prescribe, except that in no event may any such appeal be 
brought--
          (A) before the 61st day after the date on which the 
        complaint is filed under subsection (a); or
          (B) later than 15 days after the date on which the 
        complainant receives notification from the Secretary of 
        Labor under section 4322(e)(1) of title 38.
  (2) An appeal under this subsection may not be brought 
unless--
          (A) the complainant first provides written 
        notification to the Secretary of Labor of such 
        complainant's intention to bring such appeal; and
          (B) appropriate evidence of compliance with 
        subparagraph (A) is included (in such form and manner 
        as the Merit SystemsProtection Board may prescribe) 
with the notice of appeal under this subsection.
  (3) Upon receiving notification under paragraph (2)(A), the 
Secretary of Labor shall not continue to investigate or further 
attempt to resolve the complaint to which such notification 
relates.
  (c) This section shall not be construed to prohibit a 
preference eligible from appealing directly to the Merit 
Systems Protection Board from any action which is appealable to 
the Board under any other law, rule, or regulation, in lieu of 
administrative redress under this section.

Sec. 3330b. Judicial redress

  (a) In lieu of continuing the administrative redress 
procedure provided under section 3330a(b), a preference 
eligible or other individual described in section 3304(f)(1) 
may elect, in accordance with this section, to terminate those 
administrative proceedings and file an action with the 
appropriate United States district court not later than 60 days 
after the date of the election.
  (b) An election under this section may not be made--
          (1) before the 121st day after the date on which the 
        appeal is filed with the Merit Systems Protection Board 
        under section 3330a(b); or
          (2) after the Merit Systems Protection Board has 
        issued a judicially reviewable decision on the merits 
        of the appeal.
  (c) An election under this section shall be made, in writing, 
in such form and manner as the Merit Systems Protection Board 
shall by regulation prescribe. The election shall be effective 
as of the date on which it is received, and the administrative 
proceeding to which it relates shall terminate immediately upon 
the receipt of such election.

Sec. 3330c. Remedy

  (a) If the Merit Systems Protection Board (in a proceeding 
under section 3330a) or a court (in a proceeding under section 
3330b) determines that an agency has violated a right described 
in section 3330a, the Board or court (as the case may be) shall 
order the agency to comply with such provisions and award 
compensation for any loss of wages or benefits suffered by the 
individual by reason of the violation involved. If the Board or 
court determines that such violation was willful, it shall 
award an amount equal to backpay as liquidated damages.
  (b) A preference eligible or other individual described in 
section 3304(f)(1) who prevails in an action under section 
3330a or 3330b shall be awarded reasonable attorney fees, 
expert witness fees, and other litigation expenses.
          * * * * * * *

    CHAPTER 35--RETENTION PREFERENCE, RESTORATION, AND REEMPLOYMENT

          * * * * * * *

                   SUBCHAPTER I--RETENTION PREFERENCE

          * * * * * * *

Sec. 3502. Order of retention

  (a) * * *
          * * * * * * *
  (g)(1) A position occupied by a preference eligible shall not 
be placed in a single-position competitive level if the 
preference eligible is qualified to perform the essential 
functions of any other position at the same grade (or 
occupational level) in the competitive area. In such cases, the 
preference eligible shall be entitled to be placed in another 
competitive level for which such preference eligible is 
qualified. If the preference eligible is qualified for more 
than one competitive level, such preference eligible shall be 
placed in the competitive level containing the most positions.
  (2) For purposes of paragraph (1)--
          (A) a preference eligible shall be considered 
        qualified to perform the essential functions of a 
        position if, by reason of experience, training, or 
        education (and, in the case of a disabled veteran, with 
        reasonable accommodation), a reasonable person could 
        conclude that the preference eligible would be able to 
        perform those functions successfully within a period of 
        150 days; and
          (B) a preference eligible shall not be considered 
        unqualified solely because such preference eligible 
        does not meet the minimum qualification requirements 
        relating to previous experience in a specified grade 
        (or occupational level), if any, that are established 
        for such position by the Office of Personnel Management 
        or the agency.
  (h) In connection with any reduction in force, a preference 
eligible whose current or most recent performance rating is at 
least fully successful (or the equivalent) shall have, in 
addition to such assignment rights as are prescribed by 
regulation, the right, in lieu of separation, to be assigned to 
any position within the agency conducting the reduction in 
force--
          (1) for which such preference eligible is qualified 
        under subsection (g)(2)--
                  (A) that is within the preference eligible's 
                commuting area and at the same grade (or 
                occupational level) as the position from which 
                the preference eligible was released, and that 
                is then occupied by an individual, other than 
                another preference eligible, who was placed in 
                such position (whether by appointment or 
                otherwise) within 6 months before the reduction 
                in force if, within 12 months prior to the date 
                on which such individual was so placed in such 
                position, such individual had been employed in 
                the same competitive area as the preference 
                eligible; or
                  (B) that is within the preference eligible's 
                competitive area and that is then occupied by 
                an individual, other than another preference 
                eligible, who was placed in such position 
                (whether by appointment or otherwise) within 6 
                months before the reduction in force; or
          (2) for which such preference eligible is qualified 
        that is within the preference eligible's competitive 
        area and that is not more than 3 grades (or pay levels) 
        below that of the position from which the preference 
        eligible was released, except that, inthe case of a 
preference eligible with a compensable service-connected disability of 
30 percent or more, this paragraph shall be applied by substituting ``5 
grades'' for ``3 grades''.
In the event that a preference eligible is entitled to 
assignment to more than 1 position under this subsection, the 
agency shall assign the preference eligible to any such 
position requiring no reduction (or, if there is no such 
position, the least reduction) in basic pay. A position shall 
not, with respect to a preference eligible, be considered to 
satisfy the requirements of paragraph (1) or (2), as 
applicable, if it does not last for at least 12 months 
following the date on which such preference eligible is 
assigned to such position under this subsection.
  (i) A preference eligible may challenge the classification of 
any position to which the preference eligible asserts 
assignment rights (as provided by, or prescribed by regulations 
described in, subsection (h)) in an action before the Merit 
Systems Protection Board.
  (j)(1) Not later than 90 days after the date of the enactment 
of the Veterans Employment Opportunities Act of 1997, each 
Executive agency shall establish an agencywide priority 
placement program to facilitate employment placement for 
employees who--
          (A)(i) are scheduled to be separated from service due 
        to a reduction in force under--
                  (I) regulations prescribed under this 
                section; or
                  (II) procedures established under section 
                3595; or
          (ii) are separated from service due to such a 
        reduction in force; and
          (B)(i) have received a rating of at least fully 
        successful (or the equivalent) as the last performance 
        rating of record used for retention purposes; or
          (ii) occupy positions excluded from a performance 
        appraisal system by law, regulation, or administrative 
        action taken by the Office of Personnel Management.
  (2)(A) Each agencywide priority placement program under this 
subsection shall include provisions under which a vacant 
position shall not (except as provided in this paragraph or any 
other statute providing the right of reemployment to any 
individual) be filled by the appointment or transfer of any 
individual from outside of that agency (other than an 
individual described in subparagraph (B)) if--
          (i) there is then available any individual described 
        in subparagraph (B) who is qualified for the position; 
        and
          (ii) the position--
                  (I) is at the same grade or pay level (or the 
                equivalent) or not more than 3 grades (or grade 
                intervals) below that of the position last held 
                by such individual before placement in the new 
                position;
                  (II) is within the same commuting area as the 
                individual's last-held position (as referred to 
                in subclause (I)) or residence; and
                  (III) has the same type of work schedule 
                (whether full-time, part-time, or intermittent) 
                as the position last held by the individual.
  (B) For purposes of an agencywide priority placement program, 
an individual shall be considered to be described in this 
subparagraph if such individual--
          (i)(I) is an employee of such agency who is scheduled 
        to be separated, as described in paragraph (1)(A)(i); 
        or
          (II) is an individual who became a former employee of 
        such agency as a result of a separation, as described 
        in paragraph (1)(A)(ii), excluding any individual who 
        separated voluntarily under subsection (f); and
          (ii) satisfies clause (i) or (ii) of paragraph 
        (1)(B).
  (3)(A) If after a reduction in force the agency has no 
positions of any type within the local commuting areas 
specified in this subsection, the individual may designate a 
different local commuting area where the agency has continuing 
positions in order to exercise reemployment rights under this 
subsection. An agency may determine that such designations are 
not in the interest of the Government for the purpose of paying 
relocation expenses under subchapter II of chapter 57.
  (B) At its option, an agency may administratively extend 
reemployment rights under this subsection to include other 
local commuting areas.
  (4)(A) In selecting employees for positions under this 
subsection, the agency shall place qualified present and former 
employees in retention order by veterans' preference subgroup 
and tenure group.
  (B) An agency may not pass over a qualified present or former 
employee to select an individual in a lower veterans' 
preference subgroup within the tenure group, or in a lower 
tenure group.
  (C) Within a subgroup, the agency may select a qualified 
present or former employee without regard to the individual's 
total creditable service.
  (5) An individual is eligible for reemployment priority under 
this subsection for 2 years from the effective date of the 
reduction in force from which the individual will be, or has 
been, separated under this section or section 3595, as the case 
may be.
  (6) An individual loses eligibility for reemployment priority 
under this subsection when the individual--
          (A) requests removal in writing;
          (B) accepts or declines a bona fide offer under this 
        subsection or fails to accept such an offer within the 
        period of time allowed for such acceptance, or
          (C) separates from the agency before being separated 
        under this section or section 3595, as the case may be.
A present or former employee who declines a position with a 
representative rate (or equivalent) that is less than the rate 
of the position from which the individual was separated under 
this section retains eligibility for positions with a higher 
representative rate up to the rate of the individual's last 
position.
  (7) Whenever more than one individual is qualified for a 
position under this subsection, the agency shall select the 
most highly qualified individual, subject to paragraph (4).
  (8) The Office of Personnel Management shall issue 
regulations to implement this subsection.
                              ----------                              

              SECTION 1005 OF TITLE 39, UNITED STATES CODE

Sec. 1005. Applicability of laws relating to Federal employees

  (a)(1) * * *
  (2) The provisions of title 5 relating to a preference 
eligible (as that term is defined under section 2108(3) of such 
title) shall apply to an applicant for appointment and any 
officer or employee of the Postal Service in the same manner 
and under the same conditions as if the applicant, officer, or 
employee were subject to the competitive service under such 
[title.] title, subject to paragraph (5) of this subsection. 
The provisions of this paragraph shall not be modified by any 
program developed under section 1004 of this title or any 
collective-bargaining agreement entered into under chapter 12 
of this title.
          * * * * * * *
  (5)(A) The provisions of section 3304(f) of title 5 shall 
apply with respect to the Postal Service in the same manner and 
under the same conditions as if the Postal Service were an 
agency within the meaning of such provisions.
  (B) Nothing in this subsection shall be considered to require 
the application of section 3304(f) of title 5 in the case of 
any individual who is not an employee of the Postal Service 
if--
          (i) the vacant position involved is to be filled 
        pursuant to a collective-bargaining agreement;
          (ii) the collective-bargaining agreement restricts 
        competition for such position to individuals employed 
        in a bargaining unit or installation within the Postal 
        Service in which the position is located;
          (iii) the collective-bargaining agreement provides 
        that the successful applicant shall be selected on the 
        basis of seniority or qualifications; and
          (iv) the position to be filled is within a bargaining 
        unit.
  (C) The provisions of this paragraph shall not be modified by 
any program developed under section 1004 of this title or any 
collective-bargaining agreement entered into under chapter 12 
of this title.
          * * * * * * *
                              ----------                              

                      TITLE 3, UNITED STATES CODE

          * * * * * * *

            CHAPTER 2--OFFICE AND COMPENSATION OF PRESIDENT

Sec.
101.  Commencement of term of office.
     * * * * * * *
115.  Veterans' preference.
     * * * * * * *

Sec. 115. Veterans' preference

  (a) Subject to subsection (b), appointments under sections 
105, 106, and 107 shall be made in accordance with section 
2108, and sections 3309 through 3312, of title 5.
  (b) Subsection (a) shall not apply to any appointment to a 
position the rate of basic pay for which is at least equal to 
the minimum rate established for positions in the Senior 
Executive Service under section 5382 of title 5 and the duties 
of which are comparable to those described in section 
3132(a)(2) of such title or to any other position if, with 
respect to such position, the President makes certification--
          (1) that such position is--
                  (A) a confidential or policy-making position; 
                or
                  (B) a position for which political 
                affiliation or political philosophy is 
                otherwise an important qualification; and
          (2) that any individual selected for such position is 
        expected to vacate the position at or before the end of 
        the President's term (or terms) of office.
Each individual appointed to a position described in the 
preceding sentence as to which the expectation described in 
paragraph (2) applies shall be notified as to such expectation, 
in writing, at the time of appointment to such position.
          * * * * * * *
                              ----------                              

 SECTION 347 OF THE DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES 
                        APPROPRIATIONS ACT, 1996

  Sec. 347. (a) * * *
  (b) The provisions of title 5, United States Code, shall not 
apply to the new personnel management system developed and 
implemented pursuant to subsection (a), with the exception of--
          (1) * * *
          * * * * * * *
          (6) chapter 81, relating to compensation for work 
        injury; [and]
          (7) chapters 83-85, 87, and 89, relating to 
        retirement, unemployment compensation, and insurance 
        coverage[.]; and
          (8) sections 3501-3504, as such sections relate to 
        veterans' preference.
          * * * * * * *
                              ----------                              

                      TITLE 10, UNITED STATES CODE

          * * * * * * *

                    Subtitle A--General Military Law

          * * * * * * *

                           PART II--PERSONNEL

          * * * * * * *

                     CHAPTER 81--CIVILIAN EMPLOYEES

Sec.
1581.  Foreign National Employees Separation Pay Account.
     * * * * * * *
[1599c. Veterans' preference requirements: Department of Defense failure 
          to comply treated as a prohibited personnel practice.]
     * * * * * * *

[Sec. 1599c. Veterans' preference requirements: Department of Defense 
                    failure to comply treated as a prohibited personnel 
                    practice

  [(a) Prohibited Personnel Practice.--It is a prohibited 
personnel practice for a person referred to in subsection (b) 
who has authority described in that subsection--
          [(1) knowingly to take, recommend, or approve any 
        personnel action with respect to such authority if the 
        taking of such action violates a veterans' preference; 
        or
          [(2) knowingly to fail to take, recommend, or approve 
        any personnel action with respect to such authority, if 
        the failure to take such action violates a veterans' 
        preference.
  [(b) Persons Covered.--Subsection (a) applies with respect 
to--
          [(1) an officer or employee of the Department of 
        Defense who has authority to take, direct others to 
        take, recommend, or approve a personnel action with 
        respect to an employee of the Department of Defense; 
        and
          [(2) a member of the armed forces who has such 
        authority.
  [(c) Veterans' Preference Defined.--(1) In this section, the 
term ``veterans' preference'' means any of the following 
provisions of law:
          [(A) Sections 2108, 3305(b), 3309, 3310, 3311, 3312, 
        3313, 3314, 3315, 3316, 3317(b), 3318, 3320, 3351, 
        3352, 3363, 3501, 3502(b), 3504, and 4303(e) of title 5 
        and (with respect to a preference eligible referred to 
        in section 7511(a)(1)(B) of such title) subchapter II 
        of chapter 75 and section 7701 of such title.
          [(B) Sections 943(c)(2) and 1784(c) of this title.
          [(C) Section 1308(b) of the Alaska National Interest 
        Lands Conservation Act (16 U.S.C. 3198(b)).
          [(D) Section 301(c) of the Foreign Service Act of 
        1980 (22 U.S.C. 3941(c)).
          [(E) Section 3(a)(11) of the Administrative Office of 
        the United States Courts Personnel Act of 1990 (28 
        U.S.C. 602 note).
          [(F) Sections 106(f), 7281(e), and 7802(5) of title 
        38.
          [(G) Section 1005(a) of title 39.
          [(H) Any other provision of law that the Director of 
        the Office of Personnel Management designates in 
        regulations as being a veterans' preference for the 
        purposes of this section.
  [(2) For the purposes of this section, such term includes any 
regulation prescribed under subsection (b) or (c) of section 
1302 of title 5 and any other regulation that implements a 
provision of law referred to in paragraph (1).
  [(d) Personnel Action Defined.--In this section, the term 
``personnel action'' has the meaning given that term in section 
2302 of title 5.]
          * * * * * * *

                      X. Committee Recommendation

    On March 12, 1997, a quorum being present, the Committee on 
Government Reform and Oversight ordered the bill, as amended, 
favorably reported.

 Committee on Government Reform and Oversight--105th Congress Rollcall

    Date: March 12, 1997.
    Final Passage of H.R. 240, as amended.
    Offered by: Hon. Dan Burton (IN).
    Voice Vote: Yea.

    XI. Congressional Accountability Act; Public Law 104-1; Section 
                               102(B)(3)

    H.R. 240, as amended by the committee, requires the 
legislative branch to apply veterans' preference in hiring and 
reductions in force.

                                
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