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[108th Congress Public Law 271]
[From the U.S. Government Printing Office]

[DOCID: f:publ271.108]

[[Page 118 STAT. 811]]

Public Law 108-271
108th Congress

                                 An Act

 
To provide new human capital flexibilities with respect to the GAO, and 
       for other purposes. <<NOTE: July 7, 2004 -  [H.R. 2751]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: GAO Human 
Capital Reform Act of 2004.>> 

SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 31.

    (a) <<NOTE: 31 USC 701 note.>> Short Title.--This Act may be cited 
as the ``GAO Human Capital Reform Act of 2004''.

    (b) Amendment of Title 31.--Except as otherwise expressly provided, 
whenever in this Act an amendment is expressed in terms of an amendment 
to a section or other provision, the reference shall be considered to be 
made to a section or other provision of title 31, United States Code.

SEC. 2. AMENDMENTS TO PUBLIC LAW 106-303.

    (a) Authorities Made Permanent.--Sections 1 and 2 of Public Law 106-
303 (5 U.S.C. 8336 note and 5597 note) are amended by striking ``for 
purposes of the period beginning on the date of the enactment of this 
Act and ending on December 31, 2003'' each place it appears and 
inserting ``October 13, 2000''.
    (b) Sense of Congress.--
            (1) Voluntary early retirement authority.--Section 1 of 
        Public Law 106-303 <<NOTE: 5 USC 8336 note.>> is amended by 
        adding at the end the following:

    ``(e) Sense of Congress.--It is the sense of Congress that the 
implementation of this section is intended to reshape the General 
Accounting Office workforce and not downsize the General Accounting 
Office workforce.''.
            (2) Voluntary separation incentive payments.--Section 2 of 
        Public Law 106-303 <<NOTE: 5 USC 5597 note.>> is amended by 
        adding at the end the following:

    ``(g) Sense of Congress.--It is the sense of Congress that the 
implementation of this section is intended to reshape the General 
Accounting Office workforce and not downsize the General Accounting 
Office workforce.''.
    (c) Additional Limitation Relating to VSIPs.--Section 2(b) of Public 
Law 106-303 is amended by striking paragraph (2) and inserting the 
following:
            ``(2) subsection (a)(2)(G) of such section shall be 
        applied--
                    ``(A) by construing the citations therein to be 
                references to the appropriate authorities in connection 
                with employees of the General Accounting Office; and
                    ``(B) by deeming such subsection to be amended by 
                striking `Code.' and inserting `Code, or who, during the

[[Page 118 STAT. 812]]

                thirty-six month period preceding the date of 
                separation, performed service for which a student loan 
                repayment benefit was or is to be paid under section 
                5379 of title 5, United States Code.';''.

SEC. 3. ANNUAL PAY ADJUSTMENTS.

    (a) Officers and Employees Generally.--Paragraph (3) of section 
732(c) is amended to read as follows:
            ``(3) except as provided under section 733(a)(3)(B) of this 
        title, basic rates of officers and employees of the Office shall 
        be adjusted annually to such extent as determined by the 
        Comptroller General, and in making that determination the 
        Comptroller General shall consider--
                    ``(A) the principle that equal pay should be 
                provided for work of equal value within each local pay 
                area;
                    ``(B) the need to protect the purchasing power of 
                officers and employees of the Office, taking into 
                consideration the Consumer Price Index or other 
                appropriate indices;
                    ``(C) any existing pay disparities between officers 
                and employees of the Office and non-Federal employees in 
                each local pay area;
                    ``(D) the pay rates for the same levels of work for 
                officers and employees of the Office and non-Federal 
                employees in each local pay area;
                    ``(E) the appropriate distribution of agency funds 
                between annual adjustments under this section and 
                performance-based compensation; and
                    ``(F) such other criteria as the Comptroller General 
                considers appropriate, including, but not limited to, 
                the funding level for the Office, amounts allocated for 
                performance-based compensation, and the extent to which 
                the Office is succeeding in fulfilling its mission and 
                accomplishing its strategic plan;
        notwithstanding any other provision of this paragraph, an 
        adjustment under this paragraph shall not be applied in the case 
        of any officer or employee whose performance is not at a 
        satisfactory level, as determined by the Comptroller General for 
        purposes of such adjustment;''.

    (b) Officers and Employees in the Office Senior Executive Service.--
Subparagraph (B) of section 733(a)(3) is amended to read as follows:
                    ``(B) adjusted annually by the Comptroller General 
                after taking into consideration the factors listed under 
                section 732(c)(3) of this title, except that an 
                adjustment under this subparagraph shall not be applied 
                in the case of any officer or employee whose performance 
                is not at a satisfactory level, as determined by the 
                Comptroller General for purposes of such adjustment;''.

    (c) Conforming Amendment.--Section 732(b)(6) is amended by striking 
``title 5.'' and inserting ``title 5, except as provided under 
subsection (c)(3) of this section and section 733(a)(3)(B) of this 
title.''.

SEC. 4. PAY RETENTION.

    Paragraph (5) of section 732(c) is amended to read as follows:
            ``(5) <<NOTE: Regulations.>> the Comptroller General shall 
        prescribe regulations under which an officer or employee of the 
        Office shall be entitled to pay retention if, as a result of any 
        reduction-in-force or

[[Page 118 STAT. 813]]

        other workforce adjustment procedure, position reclassification, 
        or other appropriate circumstances as determined by the 
        Comptroller General, such officer or employee is placed in or 
        holds a position in a lower grade or band with a maximum rate of 
        basic pay that is less than the rate of basic pay payable to the 
        officer or employee immediately before the reduction in grade or 
        band; such regulations--
                    ``(A) shall provide that the officer or employee 
                shall be entitled to continue receiving the rate of 
                basic pay that was payable to the officer or employee 
                immediately before the reduction in grade or band until 
                such time as the retained rate becomes less than the 
                maximum rate for the grade or band of the position held 
                by such officer or employee; and
                    ``(B) shall include provisions relating to the 
                minimum period of time for which an officer or employee 
                must have served or for which the position must have 
                been classified at the higher grade or band in order for 
                pay retention to apply, the events that terminate the 
                right to pay retention (apart from the one described in 
                subparagraph (A)), and exclusions based on the nature of 
                an appointment; in prescribing regulations under this 
                subparagraph, the Comptroller General shall be guided by 
                the provisions of sections 5362 and 5363 of title 5.''.

SEC. 5. RELOCATION BENEFITS.

    Section 731 is amended by adding after subsection (e) the following:
    ``(f) <<NOTE: Regulations.>> The Comptroller General shall prescribe 
regulations under which officers and employees of the Office may, in 
appropriate circumstances, be reimbursed for any relocation expenses 
under subchapter II of chapter 57 of title 5 for which they would not 
otherwise be eligible, but only if the Comptroller General determines 
that the transfer giving rise to such relocation is of sufficient 
benefit or value to the Office to justify such reimbursement.''.

SEC. 6. INCREASED ANNUAL LEAVE FOR KEY EMPLOYEES.

    Section 731 is amended by adding after subsection (f) (as added by 
section 5 of this Act) the following:
    ``(g) <<NOTE: Regulations.>> The Comptroller General shall prescribe 
regulations under which key officers and employees of the Office who 
have less than 3 years of service may accrue leave in accordance with 
section 6303(a)(2) of title 5, in those circumstances in which the 
Comptroller General has determined such increased annual leave is 
appropriate for the recruitment or retention of such officers and 
employees. Such regulations shall define key officers and employees and 
set forth the factors in determining which officers and employees should 
be allowed to accrue leave in accordance with this subsection.''.

SEC. 7. EXECUTIVE EXCHANGE PROGRAM.

    Section 731 is amended by adding after subsection (g) (as added by 
section 6 of this Act) the following:
    ``(h) The Comptroller General may by regulation establish an 
executive exchange program under which officers and employees of the 
Office may be assigned to private sector organizations, and employees of 
private sector organizations may be assigned to the Office, to further 
the institutional interests of the Office or Congress, including for the 
purpose of providing training to officers and

[[Page 118 STAT. 814]]

employees of the Office. Regulations to carry out any such program--
            ``(1) shall include provisions (consistent with sections 
        3702 through 3704 of title 5) as to matters concerning--
                    ``(A) the duration and termination of assignments;
                    ``(B) reimbursements; and
                    ``(C) status, entitlements, benefits, and 
                obligations of program participants;
            ``(2) shall limit--
                    ``(A) the number of officers and employees who are 
                assigned to private sector organizations at any one time 
                to not more than 15; and
                    ``(B) the number of employees from private sector 
                organizations who are assigned to the Office at any one 
                time to not more than 30;
            ``(3) shall require that an employee of a private sector 
        organization assigned to the Office may not have access to any 
        trade secrets or to any other nonpublic information which is of 
        commercial value to the private sector organization from which 
        such employee is assigned;
            ``(4) shall require that, before approving the assignment of 
        an officer or employee to a private sector organization, the 
        Comptroller General shall determine that the assignment is an 
        effective use of the Office's funds, taking into account the 
        best interests of the Office and the costs and benefits of 
        alternative methods of achieving the same results and 
        objectives; and
            ``(5) shall not allow any assignment under this subsection 
        to commence after the end of the 5-year period beginning on the 
        date of the enactment of this subsection.

    ``(i) An employee of a private sector organization assigned to the 
Office under the executive exchange program shall be considered to be an 
employee of the Office for purposes of--
            ``(1) chapter 73 of title 5;
            ``(2) sections 201, 203, 205, 207, 208, 209, 603, 606, 607, 
        643, 654, 1905, and 1913 of title 18;
            ``(3) sections 1343, 1344, and 1349(b) of this title;
            ``(4) chapter 171 of title 28 (commonly referred to as the 
        `Federal Tort Claims Act') and any other Federal tort liability 
        statute;
            ``(5) the Ethics in Government Act of 1978 (5 U.S.C. App.);
            ``(6) section 1043 of the Internal Revenue Code of 1986; and
            ``(7) section 27 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 423).''.

SEC. 8. REDESIGNATION. <<NOTE: 31 USC 702 note.>> 

    (a) In <<NOTE: Government organization.>> General.--The General 
Accounting Office is hereby redesignated the Government Accountability 
Office.

    (b) References.--Any reference to the General Accounting Office in 
any law, rule, regulation, certificate, directive, instruction, or other 
official paper in force on the date of enactment of this Act shall be 
considered to refer and apply to the Government Accountability Office.

SEC. 9. PERFORMANCE MANAGEMENT SYSTEM.

    Paragraph (1) of section 732(d) is amended to read as follows:

[[Page 118 STAT. 815]]

            ``(1) for a system to appraise the performance of officers 
        and employees of the General Accounting Office that meets the 
        requirements of section 4302 of title 5 and in addition 
        includes--
                    ``(A) a link between the performance management 
                system and the agency's strategic plan;
                    ``(B) adequate training and retraining for 
                supervisors, managers, and employees in the 
                implementation and operation of the performance 
                management system;
                    ``(C) a process for ensuring ongoing performance 
                feedback and dialogue between supervisors, managers, and 
                employees throughout the appraisal period and setting 
                timetables for review;
                    ``(D) effective transparency and accountability 
                measures to ensure that the management of the system is 
                fair, credible, and equitable, including appropriate 
                independent reasonableness, reviews, internal 
                assessments, and employee surveys; and
                    ``(E) a means to ensure that adequate agency 
                resources are allocated for the design, implementation, 
                and administration of the performance management 
                system;''.

SEC. 10. CONSULTATION. <<NOTE: 31 USC 731 note.>> 

    Before the implementation of any changes authorized under this Act, 
the Comptroller General shall consult with any interested groups or 
associations representing officers and employees of the General 
Accounting Office.

SEC. 11. REPORTING REQUIREMENTS. <<NOTE: 31 USC 719 note.>> 

    (a) Annual Reports.--The Comptroller General shall include--
            (1) in each report submitted to Congress under section 
        719(a) of title 31, United States Code, during the 5-year period 
        beginning on the date of enactment of this Act, a summary review 
        of all actions taken under sections 2, 3, 4, 6, 7, 9, and 10 of 
        this Act during the period covered by such report, including--
                    (A) the respective numbers of officers and 
                employees--
                          (i) separating from the service under section 
                      2 of this Act;
                          (ii) receiving pay retention under section 4 
                      of this Act;
                          (iii) receiving increased annual leave under 
                      section 6 of this Act; and
                          (iv) engaging in the executive exchange 
                      program under section 7 of this Act, as well as 
                      the number of private sector employees 
                      participating in such program and a review of the 
                      general nature of the work performed by the 
                      individuals participating in such program;
                    (B) a review of all actions taken to formulate the 
                appropriate methodologies to implement the pay 
                adjustments provided for under section 3 of this Act, 
                except that nothing under this subparagraph shall be 
                required if no changes are made in any such methodology 
                during the period covered by such report; and
                    (C) an assessment of the role of sections 2, 3, 4, 
                6, 7, 9, and 10 of this Act in contributing to the 
                General

[[Page 118 STAT. 816]]

                Accounting Office's ability to carry out its mission, 
                meet its performance goals, and fulfill its strategic 
                plan; and
            (2) in each report submitted to Congress under such section 
        719(a) after the effective date of section
3 of this Act and before the close of the 5-year period referred to in 
paragraph (1)--
                    (A) a detailed description of the methodologies 
                applied under section 3 of this Act and the manner in 
                which such methodologies were applied to determine the 
                appropriate annual pay adjustments for officers and 
                employees of the Office;
                    (B) the amount of the annual pay adjustments 
                afforded to officers and employees of the Office under 
                section 3 of this Act; and
                    (C) a description of any extraordinary economic 
                conditions or serious budget constraints which had a 
                significant impact on the determination of the annual 
                pay adjustments for officers and employees of the 
                Office.

    (b) Final <<NOTE: Deadline.>> Report.--Not later than 6 years after 
the date of enactment of this Act, the Comptroller General shall submit 
to Congress a report concerning the implementation of this Act. Such 
report shall include--
            (1) a summary of the information included in the annual 
        reports required under subsection (a);
            (2) recommendations for any legislative changes to section 
        2, 3, 4, 6, 7, 9, or 10 of this Act; and
            (3) any assessment furnished by the General Accounting 
        Office Personnel Appeals Board or any interested groups or 
        associations representing officers and employees of the Office 
        for inclusion in such report.

    (c) Additional <<NOTE: Applicability.>> Reporting.--Notwithstanding 
any other provision of this section, the reporting requirement under 
subsection (a)(2)(C) shall apply in the case any report submitted under 
section 719(a) of title 31, United States Code, whether during the 5-
year period beginning on the date of enactment of this Act (as required 
by subsection (a)) or at any time thereafter.

SEC. 12. TECHNICAL AMENDMENT.

    Section 732(h)(3)(A) is amended by striking ``reduction force'' and 
inserting ``reduction in force''.

SEC. 13. EFFECTIVE DATES. <<NOTE: 31 USC 731 note.>> 

    (a) In General.--Except as provided in subsection (b), this Act and 
the amendments made by this Act shall take effect on the date of 
enactment of this Act.
    (b) Pay Adjustments.--
            (1) In general.--Section 3 of this Act and the amendments 
        made by that section shall take effect on October 1, 2005, and 
        shall apply in the case of any annual pay adjustment taking 
        effect on or after that date.
            (2) Interim authorities.--In connection with any pay 
        adjustment taking effect under section 732(c)(3) or 733(a)(3)(B) 
        of title 31, United States Code, before October 1, 2005, the 
        Comptroller General may by regulation--
                    (A) provide that such adjustment not be applied in 
                the case of any officer or employee whose performance is 
                not at a satisfactory level, as determined by the 
                Comptroller General for purposes of such adjustment; and

[[Page 118 STAT. 817]]

                    (B) provide that such adjustment be reduced if and 
                to the extent necessary because of extraordinary 
                economic conditions or serious budget constraints.
            (3) Additional authority.--
                    (A) In general.--The Comptroller General may by 
                regulation delay the effective date of section 3 of this 
                Act and the amendments made by that section for groups 
                of officers and employees that the Comptroller General 
                considers appropriate.
                    (B) Interim <<NOTE: Applicability.>> authorities.--
                If the Comptroller General provides for a delayed 
                effective date under subparagraph (A) with respect to 
                any group of officers or employees, paragraph (2) shall, 
                for purposes of such group, be applied by substituting 
                such date for ``October 1, 2005''.

    Approved July 7, 2004.

LEGISLATIVE HISTORY--H.R. 2751 (S. 1522):
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HOUSE REPORTS: No. 108-380 (Comm. on Government Reform).
SENATE REPORTS: No. 108-216 accompanying S. 1522 (Comm. on Governmental 
Affairs).
CONGRESSIONAL RECORD, Vol. 150 (2004):
            Feb. 25, considered and passed House.
            June 24, considered and passed Senate.

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