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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10397 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10397

  To amend title 5, United States Code, to provide for an alternative 
      removal for performance or misconduct for Federal employees.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 12, 2024

 Mr. Loudermilk (for himself, Mr. Crawford, Mr. Hill, Mr. Collins, Mr. 
Van Drew, Mr. Meuser, Mrs. Luna, Mr. Steube, Mr. Carter of Georgia, Mr. 
Baird, and Mr. Allen) introduced the following bill; which was referred 
            to the Committee on Oversight and Accountability

_______________________________________________________________________

                                 A BILL

 
  To amend title 5, United States Code, to provide for an alternative 
      removal for performance or misconduct for Federal employees.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Modern Employment 
Reform, Improvement, and Transformation Act of 2024'' or the ``MERIT 
Act of 2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Termination of authority for chapter 43 performance-based 
                            actions.
Sec. 3. Adverse actions based on performance or conduct.
Sec. 4. Prohibition on grieving adverse actions and reductions in 
                            force.
Sec. 5. Actions against senior executives for performance or conduct.
Sec. 6. Actions against supervisors for performance or conduct.
Sec. 7. Modification of procedures for furlough.
Sec. 8. Reduction of annuity of employee convicted of a felony for 
                            which an adverse action is or would have 
                            been taken.
Sec. 9. Authority to recoup bonuses or awards paid to employees.
Sec. 10. Extension of probationary period for positions within the 
                            Senior Executive Service.
Sec. 11. Extension of probationary period for employees in the 
                            competitive service.
Sec. 12. Application.

SEC. 2. TERMINATION OF AUTHORITY FOR CHAPTER 43 PERFORMANCE-BASED 
              ACTIONS.

    (a) Repeal.--Section 4303 of title 5, United States Code, is 
repealed.
    (b) Application.--Subsection (a) shall not apply to any 
performance-based action under section 4303 of title 5, United States 
Code, commenced before the effective date provided in section 12.
    (c) Conforming Amendments.--
            (1) Title 5.--Title 5, United States Code, is amended--
                    (A) in section 2302(e)(1)(A), by striking ``3504, 
                and 4303(e)'' and inserting ``and 3504'';
                    (B) in section 4302(c)(6), by striking ``but only 
                after an opportunity to demonstrate acceptable 
                performance'';
                    (C) in section 7512, by striking subparagraph (D) 
                and redesignating subparagraphs (E) and (F) as 
                subparagraphs (D) and (E), respectively;
                    (D) in section 7701(c)(1), by striking ``decision'' 
                and all that follows through ``preponderance of the 
                evidence'' and inserting ``decision is supported by a 
                preponderance of the evidence'';
                    (E) in section 9508(d), by striking ``(1) In 
                applying'' and all that follows through ``(2)''; and
                    (F) in section 9902(a)(2), by striking ``sections 
                4302 and 4303(e)'' and inserting ``section 4302''.
            (2) Title 31.--Section 732(d)(3) of title 31, United States 
        Code, is amended by striking ``consistent with section 4303 of 
        title 5''.
    (d) Clerical Amendment.--The table of sections for chapter 43 of 
title 5, United States Code, is amended by striking the item relating 
to section 4303.

SEC. 3. ADVERSE ACTIONS BASED ON PERFORMANCE OR CONDUCT.

    (a) In General.--Section 7513 of title 5, United States Code, is 
amended to read as follows:
``Sec. 7513. Cause and procedure
    ``(a) In General.--
            ``(1) Under regulations prescribed by the Office of 
        Personnel Management, an agency may take an action described in 
        paragraphs (1) through (4) of section 7512 against an employee 
        if the agency determines by a preponderance of the evidence the 
        performance or misconduct of the employee warrants such action.
            ``(2)(A) When making an initial decision on an action 
        described in paragraphs (1) through (4) of section 7512, the 
        deciding employee of the agency shall exclusively apply the 
        following factors--
                    ``(i) the nature and seriousness of the offense, 
                and its relation to the employee's duties, position, 
                and responsibilities, including whether the offense was 
                intentional or technical or inadvertent, or was 
                committed maliciously or for gain, or was frequently 
                repeated;
                    ``(ii) the employee's job level and type of 
                employment, including supervisory or fiduciary role, 
                and prominence of the position;
                    ``(iii) the employee's past disciplinary records;
                    ``(iv) the employee's past work record, including 
                length of service, performance on the job, ability to 
                get along with fellow workers, and dependability; and
                    ``(v) mitigating circumstances surrounding the 
                offense such as unusual job tensions personality 
                problems, mental impairment, harassment, or bad faith, 
                malice or provocation on the part of others involved in 
                the matter.
            ``(B) The agency shall review the initial decision and 
        uphold such decision if it is supported by substantial 
        evidence.
    ``(b) Pay of Certain Employees Subject to a Reduction in Grade.--
            ``(1) Notwithstanding any other provision of law, an 
        employee subject to a reduction in grade shall, beginning on 
        the date of such reduction, receive the annual rate of pay 
        applicable to such grade.
            ``(2) An employee subject to a reduction in grade may not 
        be placed on administrative leave during the period during 
        which an appeal (if any) under this section is ongoing, and may 
        only receive pay if the employee reports for duty or is 
        approved to use accrued unused annual, sick, family medical, 
        military, or court leave.
            ``(3) If an employee subject to a reduction in grade does 
        not report for duty or receive approval to use accrued unused 
        leave, such employee shall not receive pay or other benefits.
    ``(c) Procedure.--
            ``(1)(A) The aggregate period for written notice, response, 
        and final decision of actions described in paragraphs (1) 
        through (4) of section 7512 may not exceed 15 business days 
        unless there are reasonable causes to believe the employee has 
        committed a crime for which a sentence of imprisonment may be 
        imposed.
            ``(B) (B) The period for which an employee may respond to a 
        notice of actions described in paragraphs (1) through (4) of 
        section 7512 in writing and to furnish affidavits and other 
        documentary evidence in support of the response shall be 7 
        business days.
            ``(2) The agency shall issue a final decision with respect 
        to actions described in paragraphs (1) through (4) of section 
        7512 not later than 15 business days after the agency provides 
        notice, including a file containing all the evidence in support 
        of the proposed action, to the employee. The decision shall be 
        in writing and shall include the specific reasons therefor.
    ``(d) PIP.--The agency may carry out such actions described in 
paragraphs (1) through (4) of section 7512 without first placing an 
employee on a performance improvement plan.
    ``(e) Employee Rights.--An employee against whom actions described 
in paragraphs (1) through (4) of section 7512 is proposed is entitled 
to--
            ``(1) a written notice stating the specific reasons for the 
        proposed action;
            ``(2) be represented by an attorney or other 
        representative; and
            ``(3) a written decision and the specific reasons therefor 
        at the earliest practicable date.
    ``(f) Hearing.--An agency may provide, by regulation, for a hearing 
which may be in lieu of or in addition to the opportunity to answer 
provided under subsection (c)(1)(b) of this section.
    ``(g) Appeal.--An employee against whom an action described in 
paragraphs (1) through (4) of section 7512 is taken is entitled to 
appeal to the Merit Systems Protection Board under section 7701 of this 
title not later than 10 business days after the effective date of the 
action.
    ``(h) Procedure.--Copies of the notice of proposed action, the 
answer of the employee when written, a summary thereof when made 
orally, the notice of decision and reasons therefor, and any order 
effecting an action described in paragraphs (1) through (4) of section 
7512, together with any supporting material, shall be maintained by the 
agency and shall be furnished to the Board upon its request. Upon the 
affected employee's request, copies of the documents described in the 
preceding sentence shall be furnished to the employee, to the extent 
those documents were not provided under subsection (c).''.
    (b) Discipline of Supervisors Based on Retaliation Against 
Whistleblowers.--Section 7515(b)(2)(B) of title 5, United States Code, 
is amended--
            (1) in clause (i), by striking ``not later than 14 days'' 
        and inserting ``not more than 7 business days''; and
            (2) in clause (ii), by striking ``14-day period'' and 
        inserting ``7-business-day period''.
    (c) Application.--The amendments made by subsections (a) and (b) 
shall not apply to any action under section 7513 or 7515 of title 5, 
United States Code, as amended by those subsections, respectively, 
commenced before the effective date provided in section 12.

SEC. 4. PROHIBITION ON GRIEVING ADVERSE ACTIONS AND REDUCTIONS IN 
              FORCE.

    Section 7121 of title 5, United States Code, is amended--
            (1) in subsection (a)(1), by striking ``the settlement 
        of'';
            (2) in subsection (c)--
                    (A) by redesignating paragraphs (1) through (5) as 
                paragraphs (5) through (9), respectively; and
                    (B) by inserting before paragraph (5), as so 
                redesignated, the following:
            ``(1) an adverse action under subchapter II of chapter 75;
            ``(2) a furlough of more than 30 days by a reduction in 
        force action under subchapter I of chapter 35;
            ``(3) a separation by a reduction in force action under 
        subchapter I of chapter 35;
            ``(4) a demotion by a reduction in force action under 
        subchapter I of chapter 35;'';
            (3) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) by striking ``(1) Matters'' and all 
                        that follows through ``but not both.''; and
                            (ii) in the second sentence, by striking 
                        ``Similar matters'' and inserting ``Matters 
                        similar to those covered under subchapter II of 
                        chapter 75''; and
                    (B) by striking paragraph (2); and
            (4) in subsection (f)--
                    (A) by striking the first sentence; and
                    (B) in the second sentence, by striking ``In 
                matters similar to those covered under sections 4303 
                and 7512 of this title'' and inserting ``In matters 
                similar to those covered under subchapter II of chapter 
                75''.

SEC. 5. ACTIONS AGAINST SENIOR EXECUTIVES FOR PERFORMANCE OR CONDUCT.

    (a) Repeal of Pay Retention for Career Appointees Removed From the 
Senior Executive Service.--Section 3594(c)(1)(B) of title 5, United 
States Code, is amended to read as follows:
            ``(B)(i) any career appointee placed under subsection (a) 
        or (b)(2) of this section shall be entitled to receive basic 
        pay at the highest of--
                    ``(I) the rate of basic pay in effect for the 
                position in which placed;
                    ``(II) the rate of basic pay in effect at the time 
                of the placement for the position the career appointee 
                held in the civil service immediately before being 
                appointed to the Senior Executive Service; or
                    ``(III) the rate of basic pay in effect for the 
                career appointee immediately before being placed under 
                subsection (a) or (b) of this section; and
            ``(ii) any career appointee placed under subsection (b)(1) 
        of this section shall be entitled to receive basic pay at the 
        rate of basic pay in effect for the position in which placed; 
        and''.
    (b) Appraisal System Requirements.--Section 4314(b) of title 5, 
United States Code, is amended--
            (1) in paragraph (3), by inserting before the semicolon the 
        following: ``or, as warranted, from the civil service''; and
            (2) in paragraph (4), by inserting before the period at the 
        end the following: ``or, as warranted, from the civil 
        service''.
    (c) Suspension for 14 Days or Less.--Paragraph (1) of section 7501 
of title 5, United States Code, is amended to read as follows:
            ``(1) `employee' means--
                    ``(A) an individual in the competitive service who 
                is not serving a probationary period or trial period 
                under an initial appointment or who has completed 1 
                year of current continuous employment in the same or 
                similar positions under other than a temporary 
                appointment limited to 1 year or less; or
                    ``(B) a career appointee in the Senior Executive 
                Service who--
                            ``(i) has completed the probationary period 
                        prescribed under section 3393(d); or
                            ``(ii) was covered by the provisions of 
                        subchapter II of this chapter immediately 
                        before appointment to the Senior Executive 
                        Service; and''.
    (d) Modification of Cause and Procedure for Suspension and 
Termination.--Section 7543 of title 5, United States Code, is amended 
to read as follows:
``Sec. 7543. Cause and procedure
    ``(a) Under regulations prescribed by the Office of Personnel 
Management, an agency may take an action covered by this subchapter 
against an employee if the agency determines by a preponderance of the 
evidence the performance or misconduct of the employee warrants such 
action.
    ``(b) When making an initial decision on an action covered by this 
subchapter, the deciding employee of the agency shall exclusively apply 
the following factors--
            ``(1) the nature and seriousness of the offense, and its 
        relation to the employee's duties, position, and 
        responsibilities, including whether the offense was intentional 
        or technical or inadvertent, or was committed maliciously or 
        for gain, or was frequently repeated; and
            ``(2) the employee's job level and type of employment, 
        including supervisory or fiduciary role, and prominence of the 
        position.
    ``(c) The agency shall review the initial decision and uphold such 
decision if it is supported by substantial evidence.
    ``(d)(1)(A) The aggregate period for written notice, response, and 
final decision of actions covered by this subchapter may not exceed 15 
business days unless there are reasonable causes to believe the 
employee has committed a crime for which a sentence of imprisonment may 
be imposed.
    ``(B) The period for which an employee may respond to a notice of 
actions covered by this subchapter in writing and to furnish affidavits 
and other documentary evidence in support of the response shall be 7 
business days. (2) The agency shall issue a final decision with respect 
to a covered actions not later than 15 business days after the agency 
provides notice, including a file containing all the evidence in 
support of the proposed action, to the employee. The decision shall be 
in writing and shall include the specific reasons therefor.
    ``(e) An employee against whom an action covered by this subchapter 
is proposed is entitled to--
            ``(1) a written notice stating the specific reasons for the 
        proposed action;
            ``(2) be represented by an attorney or other 
        representative; and
            ``(3) a written decision and the specific reasons therefor 
        at the earliest practicable date.
    ``(f) An agency may provide, by regulation, for a hearing which may 
be in lieu of or in addition to the opportunity to answer provided 
under subsection (d)(1)(B) of this section.
    ``(g) An employee against whom an action is taken under this 
section is entitled to appeal to the Merit Systems Protection Board 
under section 7701 of this title not later than 10 business days after 
the effective date of the action.
    ``(h) Copies of the notice of proposed action, the answer of the 
employee when written, a summary thereof when made orally, the notice 
of decision and reasons therefor, and any order effecting an action 
covered by this subchapter, together with any supporting material, 
shall be maintained by the agency and shall be furnished to the Board 
upon its request. Upon the affected employee's request, copies of the 
documents described in the preceding sentence shall be furnished to the 
employee, to the extent those documents were not provided under 
subsection (c).
    ``(i) In this section, the term `misconduct' includes neglect of 
duty, malfeasance, or failure to accept a directed reassignment or to 
accompany a position in a transfer of function.''.
    (e) Relation to Other Provisions of Law.--Section 3592(b)(1) of 
title 5, United States Code, deso not apply to an action under section 
7543(a), as amended in subsection (d).
    (f) Conforming Amendments.--Title 5, United States Code, is 
amended--
            (1) in section 3592(b)(2)(B), by striking ``any 
        disciplinary action'' and inserting ``any action under section 
        7543'';
            (2) in section 3593(a)(2), by striking ``misconduct, 
        neglect of duty, malfeasance,'' and inserting ``a removal under 
        section 7543'';
            (3) in section 3594, by adding at the end the following:
    ``(d) This section shall not apply to any career appointee who is 
subject to a personnel action under subchapter V of chapter 75.''; and
            (4) in section 7542, by striking ``or to a removal under 
        section 3592 or 3595'' and inserting the following: ``to a 
        removal from the Senior Executive Service under section 3592 of 
        this title, to a reduction in force as defined in section 
        3595(d) of this title, or to a transfer of function as 
        described in section 3595(e)''.
    (g) Application.--The amendments made by this section shall not 
apply to any personnel action under subchapter V of chapter 75 of title 
5, United States Code, commenced before the effective date of this Act.

SEC. 6. ACTIONS AGAINST SUPERVISORS FOR PERFORMANCE OR CONDUCT.

    Subchapter II of title 5, United States Code, is amended--
            (1) by redesignating sections 7514 and 7515 as sections 
        7516 and 7517, respectively; and
            (2) by inserting after section 7513 the following:
``Sec. 7514. Supervisors
    ``(a) In General.--
            ``(1) The agency may take an action covered by this 
        subchapter against a supervisor, as defined in section 
        7103(a)(10), if the agency determines by a preponderance of the 
        evidence that the performance or misconduct of the supervisor 
        warrants such action.
            ``(2) When making an initial decision on an action covered 
        by this subchapter, the deciding employee of the agency shall 
        exclusively apply the following factors:
                    ``(A) The nature and seriousness of the offense, 
                and its relation to the supervisor's duties, position, 
                and responsibilities, including whether the offense was 
                intentional or technical or inadvertent, or was 
                committed maliciously or for gain, or was frequently 
                repeated.
                    ``(B) The supervisor's job level and type of 
                employment, including supervisory or fiduciary role, 
                and prominence of the position.
            ``(3) The agency shall review the initial decision and 
        uphold such decision if it is supported by substantial 
        evidence.
            ``(4) A supervisor against whom an action covered by this 
        subchapter is proposed is entitled to--
                    ``(A) a written notice stating the specific reasons 
                for the proposed action;
                    ``(B) be represented by an attorney or other 
                representative; and
                    ``(C) a written decision and the specific reasons 
                therefor at the earliest practicable date.
            ``(5) The agency may carry out such action covered by this 
        subchapter without first placing a supervisor on a performance 
        improvement plan.
            ``(6) The procedures under chapter 43 shall not apply to an 
        action covered by this subchapter.
    ``(b) Procedure.--(1)(A) The aggregate period for written notice, 
response, and final decision of actions covered by this subchapter may 
not exceed 15 business days unless there are reasonable causes to 
believe the employee has committed a crime for which a sentence of 
imprisonment may be imposed.
    ``(B) The period for which an employee may respond to a notice of 
actions covered by this subchapter in writing and to furnish affidavits 
and other documentary evidence in support of the response shall be 7 
business days.
    ``(2) The agency shall issue a final decision with respect to a 
covered action not later than 15 business days after the agency 
provides notice, including a file containing all the evidence in 
support of the proposed action, to the employee. The decision shall be 
in writing and shall include the specific reasons therefor.
    ``(c) Reduction in Grade.--
            ``(1) A reduction in grade under subsection (a) shall be 
        carried out as a reduction in grade for which the covered 
        individual is qualified, that the agency determines is 
        appropriate, and that reduces the annual rate of pay of the 
        supervisor.
            ``(2) Notwithstanding any other provision of law, any 
        supervisor subject to a reduction in grade--
                    ``(A) shall, beginning on the date of such 
                demotion, receive the annual rate of pay applicable to 
                such grade;
                    ``(B) may not be placed on administrative leave 
                during the period during which an appeal (if any) under 
                this section is ongoing, and may only receive pay if 
                the supervisor reports for duty or is approved to use 
                accrued unused annual, sick, family medical, military, 
                or court leave; and
                    ``(C) who does not report for duty or receive 
                approval to use accrued unused leave shall not receive 
                pay or other benefits.
    ``(d) Definition.--In this section, the term `supervisor' has the 
meaning given that term under section 7103(a).''.

SEC. 7. MODIFICATION OF PROCEDURES FOR FURLOUGH.

    (a) Furlough of 14 Days or Less; Emergency Furlough.--Subchapter I 
of chapter 75 of title 5, United States Code, is amended--
            (1) in section 7501, as amended by section 5(c),--
                    (A) in paragraph (1) by striking ``and'' at the 
                end;
                    (B) by redesignating paragraph (2) as paragraph 
                (4); and
                    (C) by inserting the following after paragraph (1) 
                the following:
            ``(2) `furlough' has the meaning given that term in section 
        7511(a)(5);
            ``(3) `emergency furlough' means a furlough due to a lapse 
        in appropriations;'';
            (2) in section 7502, by striking ``This subchapter'' and 
        all that follows through ``this title.'' and inserting the 
        following: ``This subchapter applies to--
            ``(1) a suspension for 14 days or less, but not a 
        suspension under section 7521 or 7532 or any action initiated 
        under section 1215;
            ``(2) a furlough for 14 days or less; and
            ``(3) an emergency furlough of any duration.'';
            (3) by redesignating section 7504 as section 7505; and
            (4) by inserting after section 7503, the following:
``Sec. 7504. Furlough and emergency furlough cause and procedure
    ``(a) General Furlough.--
            ``(1) In general.--An employee may be subject to a furlough 
        for such cause as will promote the efficiency of the service. 
        Any employee furloughed under this section is entitled to the 
        procedures established under the regulations promulgated under 
        paragraph (2).
            ``(2) Procedures.--Not later than 180 days after the date 
        of enactment of this section, the Office of Personnel 
        Management shall promulgate regulations providing for--
                    ``(A) the circumstances under which an employee may 
                be furloughed under this section;
                    ``(B) the procedures to be afforded furloughed 
                employees, including, to the extent appropriate and 
                practicable under the circumstances of the furlough 
                action--
                            ``(i) a written notice stating the specific 
                        reasons for the proposed action;
                            ``(ii) be represented by an attorney or 
                        other representative; and
                            ``(iii) a written decision and the specific 
                        reasons therefor at the earliest practicable 
                        date; and
                    ``(C) the materials that shall be furnished to a 
                furloughed employee and the Merit Systems Protection 
                Board upon request of the employee or the Board.
    ``(b) Emergency Furlough.--
            ``(1) In general.--An employee may be subject to an 
        emergency furlough.
            ``(2) Procedures.--
                    ``(A) Notice.--Under regulations prescribed by the 
                Office of Personnel Management, any employee subject to 
                an emergency furlough shall be afforded notice 
                explaining the reasons for the emergency furlough. If 
                the notice cannot be provided in advance of the 
                emergency furlough, notice shall be provided as soon as 
                reasonably practicable.
                    ``(B) Other procedures.--No other procedures, 
                including those provided under subsection (a) or any 
                other provision of this title, shall be available to 
                any employee subject to an emergency furlough under 
                this subsection.
            ``(3) Definition.--For the purposes of this section, the 
        term `employee' means any employee described under section 
        7501(1).''.
    (b) Furlough of More Than 14 Days.--Subchapter II of chapter 75 of 
title 5, United States Code, is amended--
            (1) in section 7511(a)(5) by inserting before the period 
        the following: ``, but does not include an emergency furlough 
        as defined in section 7501 of title 5''.
            (2) in section 7512, as amended by section 2(c)--
                    (A) in paragraph (5) by striking ``a furlough of 30 
                days or less'' and inserting ``a furlough of more than 
                14 days but less than 31 days'';
                    (B) in subparagraph (D), as redesignated by section 
                2(c), by striking ``or'' at the end;
                    (C) in subparagraph (E), as redesignated by section 
                2(c), by striking the period at the end and inserting 
                ``; or''; and
                    (D) by adding at the end the following:
                    ``(F) an emergency furlough action under section 
                7504.'';
            (3) by inserting after section 7514, as added by section 6, 
        the following:
``Sec. 7515. Furlough cause and procedure
    ``(a) In General.--An employee may be subject to a furlough for 
such cause as will promote the efficiency of the service. Any employee 
furloughed under this section is entitled to the procedures established 
under the regulations promulgated under subsection (b).
    ``(b) Procedures.--Not later than 180 days after the date of 
enactment of this section, the Office of Personnel Management shall 
promulgate regulations providing for--
            ``(1) the circumstances under which an employee may be 
        furloughed under this section;
            ``(2) the procedures provided under section 7513 to the 
        extent appropriate and practicable under the circumstances of 
        the furlough action; and
            ``(3) the materials that shall be furnished to a furloughed 
        employee and the Merit Systems Protection Board upon request of 
        the employee or the Board.
    ``(c) Appeal.-- An employee against whom a furlough action is taken 
under this section is entitled to appeal to the Merit Systems 
Protection Board under section 7701 not later than 10 business days 
after the effective date of the action.''.
    (c) Administrative Law Judges.--Section 7521(b) of title 5, United 
States Code, is amended--
            (1) in subparagraph (B) by striking ``or'' at the end;
            (2) in subparagraph (C) by striking the period at the end 
        and inserting ``or''; and
            (3) by adding at the end the following:
                    ``(D) an emergency furlough action under section 
                7504.''.
    (d) Technical Amendments.--
            (1) Section 7503.--The heading of section 7503 of title 5, 
        United States Code, is amended by striking ``Cause and 
        procedure'' and inserting ``Suspension cause and procedure'',.
            (2) Section 7513.--Section 7513 of title 5, United States 
        Code, is amended by striking ``Cause and procedure'' and 
        inserting ``Cause and procedure for actions other than 
        furlough''.
    (e) Clerical Amendments.--
            (1) Subchapter i of chapter 75 of title 5.--The table of 
        sections for subchapter I of chapter 75 of title 5, United 
        States Code, is amended by striking the items relating to 
        sections 7503 and 7504 and inserting the following:

``7503. Suspension cause and procedure.
``7504. Furlough and emergency furlough cause and procedure.
``7505. Regulations.''.
            (2) Subchapter ii of chapter 75 of title 5.--The table of 
        sections for subchapter II of chapter 75 of title 5, United 
        States Code, is amended by striking the items relating to 
        sections 7513 through 7515 and inserting the following:

``7513. Cause and procedure for actions other than furlough.
``7514. Supervisors.
``7515. Furlough cause and procedure.
``7516. Regulations.
``7517. Discipline of supervisors based on retaliation against 
                            whistleblowers.''.
    (f) Application.--Notwithstanding section 12, the amendments made 
by this section shall take effect on the earlier of--
            (1) the date that is 180 days after the date of enactment 
        of this Act; or
            (2) the date on which the Office of Personnel Management 
        promulgates regulations provided under sections 7504 and 7515 
        of title 5, United States Code, as added by this section.

SEC. 8. REDUCTION OF ANNUITY OF EMPLOYEE CONVICTED OF A FELONY FOR 
              WHICH AN ADVERSE ACTION IS OR WOULD HAVE BEEN TAKEN.

    (a) Reduction of Annuity of Employee Convicted of a Felony for 
Which an Adverse Action Is Taken.--
            (1) In general.--Subchapter II of chapter 83 of title 5, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 8323. Reduction of benefits of employees convicted of certain 
              crimes
    ``(a) Reduction of Annuity.--
            ``(1) In general.--The felonious service of a covered 
        individual shall not be taken into account for purposes of 
        calculating an annuity with respect to the individual under 
        subchapter III of this chapter or chapter 84 if--
                    ``(A) the covered individual is finally convicted 
                of a felony; and
                    ``(B) the head of the agency at which the 
                individual was employed determines that the conviction 
                was based on the acts or omissions of the covered 
                individual that--
                            ``(i) were taken or not taken in the 
                        performance of the covered individual's 
                        official duties at the agency; and
                            ``(ii) are sufficient to support a removal 
                        action under section 7513, 7543, or any other 
                        provision of law against the covered 
                        individual.
            ``(2) Procedures.--A covered individual against whom a 
        determination is made under paragraph (1) shall be afforded--
                    ``(A) notice of the determination not later than 15 
                business days in advance of a final order under 
                paragraph (3); and
                    ``(B) an opportunity to respond to the 
                determination by not later than 10 business days after 
                receipt of the notice.
            ``(3) Final order.--The head of the agency shall issue a 
        final order to carry out paragraph (1) not later than--
                    ``(A) in the case of a covered individual who 
                responds under paragraph (2)(B), 5 business days after 
                receiving the response from the covered individual, to 
                the maximum extent practicable; or
                    ``(B) in the case of a covered individual who does 
                not so respond, 15 business days after the date on 
                which the head of the agency provided notice to the 
                individual under paragraph (2)(A), to the maximum 
                extent practicable.
            ``(4) Appeal.--A covered individual with respect to whom an 
        annuity is to be reduced under this subsection may appeal the 
        final order under paragraph (3) to the Merit Systems Protection 
        Board in accordance with any regulations that the Board may 
        prescribe for purposes of this subsection. An appeal may not be 
        made under this paragraph later than that date that is 10 
        business days after the date on which an order is issued under 
        paragraph (3).
    ``(b) Administrative Requirements.--
            ``(1) In general.--Not later than 30 business days after 
        the date on which the head of an agency issues a final order 
        under subsection (a) or a final decision of the Merit Systems 
        Protection Board is rendered (as the case may be) with respect 
        to an individual, the applicable employing agency shall amend 
        the covered individual's retirement records to reflect the 
        period of service that is no longer creditable by operation of 
        this section and transmit the amended records to the Director 
        of the Office of Personnel Management.
            ``(2) Annuitants.--With respect to any covered individual 
        who is an annuitant on the date on which a final order is so 
        issued, the Director of the Office of Personnel Management 
        shall, not later than 30 business days after the receipt of 
        amended retirement records from an agency under paragraph (1), 
        recalculate the annuity of the annuitant.
    ``(c) Lump-Sum Annuity Credit.--A covered individual with respect 
to whom an annuity is reduced under subsection (a) shall be entitled to 
be paid so much of the individual's lump-sum credit as is attributable 
to the period of felonious service.
    ``(d) Spouse Exception.--The spouse of any covered individual 
referred to in subsection (a) shall be eligible for spousal annuity 
benefits that, but for subsection (a), would otherwise have been 
payable if the Attorney General of the United States or the attorney 
general of a State, a territory, or the District of Columbia determines 
that the spouse fully cooperated with authorities in the conduct of a 
criminal investigation and subsequent prosecution of the individual 
that resulted in the benefit reduction.
    ``(e) Application.--Nothing in this section shall be construed to 
affect or otherwise mitigate the application of any other section of 
this subchapter.
    ``(f) Definitions.--In this section--
            ``(1) the term `covered individual' means--
                    ``(A) an individual who is removed from a position 
                as an employee (as defined in section 2105) in the 
                civil service for performance or misconduct under 
                section 7513, 7543, or any other provision of law; or
                    ``(B) an individual who--
                            ``(i) is an employee (as defined in section 
                        2105) subject to a removal action for 
                        performance or misconduct under section 7513, 
                        7543, or any other provision of law; and
                            ``(ii) voluntarily separates from service 
                        with the employing agency prior to the issuance 
                        of a final decision with respect to the removal 
                        action;
            ``(2) the term `felonious service' means, with respect to a 
        covered individual, the period of service--
                    ``(A) beginning on the date on which the head of 
                the employing agency determines that the individual 
                commenced engaging in the acts or omissions that gave 
                rise to the removal action or proposed removal action 
                described in paragraph (1); and
                    ``(B) ending on the date that is the earlier of--
                            ``(i) the date on which the individual is 
                        removed from or voluntarily separates from a 
                        position at the agency; or
                            ``(ii) the date on which the individual 
                        ceases engaging in the acts or omissions that 
                        gave rise to the removal action or proposed 
                        removal action described in paragraph (1);
            ``(3) the term `finally convicted' or `final conviction' 
        refers to a conviction of a felony--
                    ``(A) that has not been appealed and is no longer 
                appealable because the time for taking an appeal has 
                expired; or
                    ``(B) that has been appealed and the appeals 
                process for which is completed;
            ``(4) the term `lump-sum credit' has the meaning given that 
        term in section 8331(8) or 8401(19) (as the case may be); and
            ``(5) the term `service' has the meaning given that term in 
        section 8331(12) or 8401(26) (as the case may be).''.
            (2) Clerical amendment.--The table of sections for 
        subchapter II of chapter 83 of title 5, United States Code, is 
        amended by adding at the end the following:

``8323. Reduction of benefits of employees convicted of certain 
                            crimes.''.
    (b) Application.--Section 8323 of title 5, United States Code, as 
added by subsection (a), shall apply to acts or omissions described in 
subsection (a)(1)(B) of that section occurring after the date of 
enactment of this Act.
    (c) Regulations.--The Office of Personnel Management may prescribe 
regulations to carry out this section and the amendments made by this 
section.

SEC. 9. AUTHORITY TO RECOUP BONUSES OR AWARDS PAID TO EMPLOYEES.

    (a) Adverse Findings and Employees Under Investigation.--Chapter 45 
of title 5, United States Code, is amended by adding at the end the 
following:

            ``Subchapter IV--Limitations on Bonus Authority

``Sec. 4531. Certain forms of misconduct
    ``(a) Definitions.--In this section:
            ``(1) Adverse finding.--
                    ``(A) In general.--The term `adverse finding' means 
                a determination by the head of the agency employing an 
                employee that the conduct of the employee--
                            ``(i) violated a policy of the agency for 
                        which the employee may be removed or suspended 
                        for a period of not less than 14 days; or
                            ``(ii) violated a law for which the 
                        employee may be imprisoned for more than 1 
                        year.
                    ``(B) Basis.--A determination described in 
                subparagraph (A) may be based on an investigation by, a 
                determination of, or information provided by the 
                Inspector General or another senior ethics official of 
                an agency or the Comptroller General of the United 
                States, as part of carrying out an activity, authority, 
                or function of the Inspector General, senior ethics 
                official, or Comptroller General, respectively, under a 
                provision of law other than this section.
            ``(2) Agency.--The term `agency' has the meaning given the 
        term in section 551.
            ``(3) Bonus.--The term `bonus' means any performance award 
        or cash award under--
                    ``(A) section 4505a;
                    ``(B) section 5384; or
                    ``(C) section 5754.
            ``(4) Employee.--The term `employee' means an employee of 
        an agency.
    ``(b) Prohibition.--The head of an agency may not award a bonus to 
an employee of the agency until the date that is 5 years after the end 
of the fiscal year during which the head of an agency makes an adverse 
finding relating to the employee.
    ``(c) After Bonus Awarded.--
            ``(1) In general.--For a bonus awarded to an employee after 
        the date of enactment of this section, if the head of the 
        agency employing the employee makes an adverse finding relating 
        to the employee during the fiscal year in which the bonus is 
        awarded, the head of the agency, after notice and an 
        opportunity for a hearing, shall issue an order directing the 
        employee to repay the amount of the bonus.
            ``(2) Repayment plan.--An agency shall allow an employee 
        who is required to repay a bonus under paragraph (1) to repay 
        that bonus using a repayment plan.
            ``(3) Hearings.--A hearing under this subsection shall be 
        conducted in accordance with regulations relating to hearings 
        promulgated by the head of the agency under chapter 75.
    ``(d) Condition of Receipt.--As a condition of receiving a bonus 
awarded after the date of enactment of this section, an employee shall 
sign a certification stating that the employee shall repay the bonus in 
accordance with a final order issued under subsection (c).
    ``(e) Appeal.--An employee determined to be ineligible for a bonus 
under subsection (b) or against whom an order is issued under 
subsection (c) may submit an appeal to the Merit Systems Protection 
Board under section 7701.''.
    (b) Rulemaking.--The head of each agency, as defined in section 551 
of title 5, United States Code, may promulgate rules to carry out 
section 4531 of title 5, United States Code, as added by subsection 
(a).
    (c) Technical and Conforming Amendment.--The table of sections for 
chapter 45 of title 5, United States Code, is amended by adding at the 
end the following:

            ``subchapter iv--limitations on bonus authority

``4531. Certain forms of misconduct.

SEC. 10. EXTENSION OF PROBATIONARY PERIOD FOR POSITIONS WITHIN THE 
              SENIOR EXECUTIVE SERVICE.

    (a) In General.--Section 3393(d) of title 5, United States Code, is 
amended by striking ``1-year'' and inserting ``2-year''.
    (b) Conforming Amendment.--Section 3592(a)(1) of title 5, United 
States Code, is amended by striking ``1-year'' and inserting ``2-
year''.
    (c) Application.--The amendments made by this section shall apply 
in the case of any individual initially appointed as a career appointee 
under section 3393 of title 5, United States Code, on or after the 
effective date provided in section 12 of this Act.

SEC. 11. EXTENSION OF PROBATIONARY PERIOD FOR EMPLOYEES IN THE 
              COMPETITIVE SERVICE.

    (a) Extension of Probationary Period.--
            (1) In general.--Section 3321 of title 5, United States 
        Code, is amended--
                    (A) in subsection (a), by striking ``The 
                President'' and inserting ``Subject to subsections (c) 
                and (d), the President'';
                    (B) by redesignating subsection (c) as subsection 
                (e); and
                    (C) by inserting after subsection (b) the 
                following:
    ``(c)(1) The length of a probationary period established under 
paragraph (1) or (2) of subsection (a) shall--
            ``(A) with respect to any position that requires formal 
        training, begin on the date of the appointment to the position 
        and end on the date that is 2 years after the date on which the 
        formal training is completed;
            ``(B) with respect to any position that requires a license, 
        begin on the date of the appointment to the position and end on 
        the date that is 2 years after the date of the appointment or 
        the date on which the license is granted, whichever is later; 
        and
            ``(C) with respect to any position not covered by 
        subparagraph (A) or (B), be a period of 2 years beginning on 
        the date of the appointment to the position.
    ``(2) For purposes of paragraph (1)--
            ``(A) the term `formal training' means, with respect to any 
        position, a training program required by law, rule, or 
        regulation, or otherwise required by the employing agency, to 
        be completed by the employee before the employee is able to 
        successfully execute the duties of the applicable position; and
            ``(B) the term `license' means a license, certification, or 
        other grant of permission to engage in a particular activity.
    ``(d) The head of each agency shall, in the administration of this 
section, take appropriate measures to ensure that--
            ``(1) any announcement of a vacant position and any offer 
        of appointment made to an individual with respect to a vacant 
        position clearly states the terms and conditions of any 
        applicable probationary period, including any formal training 
        period and any license requirement;
            ``(2) any individual who is required to complete a 
        probationary period under this section receives timely notice 
        of any requirements, including performance requirements, that 
        must be met in order to satisfactorily complete that period;
            ``(3) any supervisor or manager of an individual who is 
        required to complete a probationary period under this section 
        receives periodic notifications of the end date of that period 
        not later than 1 year, 6 months, 3 months, and 30 days before 
        the end date; and
            ``(4) if the agency head decides to retain an individual 
        after the completion of a probationary period under this 
        section, the agency head submits a certification to that effect 
        to the President, supported by a brief statement of the basis 
        for the certification, in such form and manner as the President 
        may by regulation prescribe.''.
            (2) Technical amendment.--Section 3321(e) of title 5, 
        United States Code (as so redesignated by paragraph (1)), is 
        amended by striking ``Subsections (a) and (b)'' and inserting 
        ``Subsections (a) through (d)''.
            (3) Application.--This subsection and the amendments made 
        by this subsection shall apply in the case of any appointment 
        (as referred to in section 3321(a)(1) of title 5, United States 
        Code) and any initial appointment (as referred to in section 
        3321(a)(2) of that title) taking effect on or after the 
        effective date provided in section 12 of this Act.
    (b) Adverse Actions.--
            (1) Subchapter i of chapter 75 of title 5.--Section 7501(1) 
        of title 5, United States Code, as amended by sections 5(c) and 
        7(a)(1), is further amended--
                    (A) by striking ``or, except'' and inserting ``and, 
                except''; and
                    (B) by striking ``1 year of current'' and inserting 
                ``2 years of current''.
            (2) Subchapter ii of chapter 75 of title 5.--Section 
        7511(a)(1) of title 5, United States Code, is amended--
                    (A) in subparagraph (A)--
                            (i) in clause (i), by striking ``; or'' and 
                        inserting ``; and''; and
                            (ii) in clause (ii), by striking ``1 year'' 
                        the first place it appears and inserting ``2 
                        years'';
                    (B) in subparagraph (B), by striking ``1 year'' and 
                inserting ``2 years''; and
                    (C) in subparagraph (C)(i), by striking ``; or'' 
                and inserting ``; and''.
            (3) Application.--The amendments made by paragraphs (1) and 
        (2) shall apply in the case of any individual whose period of 
        continuous service commences on or after the effective date 
        provided in section 12.
    (c) Regulations.--The Office of Personnel Management may prescribe 
regulations to carry out this section and the amendments made by this 
section.

SEC. 12. APPLICATION.

    (a) Effective Date.--Unless otherwise specifically provided for in 
this Act, the amendments made by this Act shall take effect on the date 
that is 1 year after the date of enactment of this Act.
    (b) Collective Bargaining Agreements.--Notwithstanding any other 
provision of law, the procedures established or amended by this Act 
shall supersede any collective bargaining agreement to the extent that 
the agreement is inconsistent with those procedures.
    (c) Definition of Business Day.--For purposes of carrying out this 
Act and the amendments made by this Act, the term ``business day'' 
means any day other than a Saturday, Sunday, or legal public holiday 
under section 6103(a) of title 5, United States Code.
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