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[House Report 115-82]
[From the U.S. Government Publishing Office]

115th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                      {       115-82

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   DISTRICT OF COLUMBIA COURTS AND PUBLIC DEFENDER SERVICE VOLUNTARY 
                   SEPARATION INCENTIVE PAYMENTS ACT

                                _______
                                

 April 6, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 1003]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Oversight and Government Reform, to whom 
was referred the bill (H.R. 1003) to authorize the 
establishment of a program of voluntary separation incentive 
payments for nonjudicial employees of the District of Columbia 
courts and employees of the District of Columbia Public 
Defender Service, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
Committee Statement and Views....................................     2
Section-by-Section...............................................     3
Explanation of Amendments........................................     4
Committee Consideration..........................................     4
Roll Call Votes..................................................     4
Application of Law to the Legislative Branch.....................     4
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................     4
Statement of General Performance Goals and Objectives............     4
Duplication of Federal Programs..................................     4
Disclosure of Directed Rule Makings..............................     4
Federal Advisory Committee Act...................................     5
Unfunded Mandate Statement.......................................     5
Earmark Identification...........................................     5
Committee Estimate...............................................     5
Budget Authority and Congressional Budget Office Cost Estimate...     5
Changes in Existing Law Made by the Bill as Reported.............     8

                     Committee Statement and Views

                          PURPOSE AND SUMMARY

    H.R. 1003, the District of Columbia Courts and Public 
Defender Service Voluntary Separation Incentive Payments Act, 
provides the District of Columbia Courts System and the 
District of Columbia Public Defender Service with authority to 
create a voluntary separation incentive payments program. The 
program is substantially similar to the existing federal 
program. Payments made under the program allow the District 
Courts System and Public Defender Service to right size their 
workforces and reduce unnecessary overhead costs.

                  BACKGROUND AND NEED FOR LEGISLATION

    The use of voluntary separation incentive payments (VSIPs) 
by federal agencies and the federal judicial branch was made 
permanent in 2002.\1\ The program established under this 
statute provides authority for the Office of Personnel 
Management (OPM) to authorize agencies to provide buyouts to 
employees in surplus positions or employees with unnecessary 
skill sets. Employees receive a VSIP in exchange for 
voluntarily resigning or retiring. VSIP payment amounts are 
determined as the lesser of either the amount of severance pay 
the individual would receive under a reduction in force per 
section 5595 of title 5, United States Code, or an amount 
determined by the agency.\2\ The amount an agency may pay to an 
employee under a VSIP is capped at $25,000.\3\ This same cap 
would apply to the District of Columbia VSIP authorization.
---------------------------------------------------------------------------
    \1\5 USC Sec. Sec. 3521-3525
    \2\Workforce Restructuring, Office of Personnel Mgmt., available at 
https://www.opm.gov/policy-data-oversight/workforce-restructuring/
voluntary-separation-incentive-payments/ (last accessed Mar. 14, 2017).
    \3\Id. The National Defense Authorization Act for Fiscal Year 2017 
(P.L. 114-328) authorized a one-year increase in the VSIP cap for 
Department of Defense civilian employees from $25,000 to $40,000.
---------------------------------------------------------------------------
    In 1996, the Government Accountability Office (GAO) 
reviewed cost savings that could be realized by using VSIPs.\4\ 
The review compared the savings that result from a VSIP 
program, termed ``buyouts'' in the study, to that of a 
reduction in force effort.\5\ GAO found that buyouts could 
result in up to 50 percent greater savings than reduction in 
force efforts due to a number of factors.\6\ The most 
significant of these factors is that while reductions in force 
generally impact junior employees, VSIP offers attract more 
senior employees, particularly those eligible for 
retirement.\7\ As a result of this disparate impact, GAO found 
that the average salary for individuals receiving buyouts was 
$34,745 for resigning employees and $48,000 for retiring 
employees, compared to an average salary of $29,495 for 
employees separated through a reduction in force.\8\ In 
addition to the greater cost savings of VSIPs, OPM also noted 
that VSIPs are far less disruptive than reductions in force on 
impacted agencies.\9\
---------------------------------------------------------------------------
    \4\U.S. General Accounting Office, Federal Downsizing: The Costs 
and Savings of Buyouts Versus Reductions-in-Force, GAO-96-63 (May 14, 
1996). The name of the General Accounting Office has since changed to 
the Government Accountability Office.
    \5\Id.
    \6\Id.
    \7\Id.
    \8\Id.
    \9\Office of Personnel Mgmt., Guide to Voluntary Separation 
Incentive Payments (2006).
---------------------------------------------------------------------------
    Although VSIP authority is available to federal agencies 
and the federal judicial branch, neither the District Courts 
System nor the Public Defender Service has such authority.
    H.R. 1003 provides the necessary authority for the District 
Courts System and the Public Defender Service to create and 
implement VSIP programs. This authority allows these agencies 
access to a much-needed human resources tool, enabling them to 
eliminate unnecessary positions and the federal government to 
realize associated cost savings.

                          LEGISLATIVE HISTORY

    On February 13, 2017, Delegate Eleanor Holmes Norton (D-DC) 
introduced H.R. 1003, the District of Columbia Courts and 
Public Defender Service Voluntary Separation Incentive Payments 
Act. H.R. 1003 was referred to the Committee on Oversight and 
Government Reform. The Committee considered H.R. 1003 at a 
business meeting on February 14, 2017 and ordered the bill 
favorably reported, without amendment, by voice vote.
    In the 114th Congress, Delegate Norton introduced similar 
legislation, H.R. 5037. The Committee on Oversight and 
Government Reform ordered H.R. 5037 favorably reported, and 
H.R. 5037 passed the House with overwhelming bipartisan 
support, with a vote total of 413-1.
    In addition, Delegate Norton introduced earlier iterations 
of the bill in the 113th and 109th Congresses. In the 113th 
Congress, Delegate Norton introduced H.R. 5006. During the 
109th Congress, Delegate Norton introduced H.R. 5711.

                           Section-by-Section

Section 1. Short title

    Section 1 establishes the bill's short title as the 
``District of Columbia Courts and Public Defender Service 
Voluntary Separation Incentive Payments Act.''

Section 2. Authorization for program of voluntary separation incentive 
        payments for District of Columbia Courts

    Section 2 amends Chapter 17 of title 11 of the D.C. Code by 
inserting a new section, 1726A, which authorizes the Joint 
Committee on Judicial Administration to establish a voluntary 
separation incentive payment program for nonjudicial employees. 
The program is substantially similar to the program for federal 
judicial branch employees authorized under subchapter II of 
chapter 35 of title 5, United States Code.

Section 3. Authorization for program of voluntary separation incentive 
        payments for District of Columbia Public Defender Service

    Section 3 amends section 305 of the District of Columbia 
Court Reform and Criminal Procedure Act of 1970 by adding a new 
subsection (d), which would provide that the Director of the 
District of Columbia Public Defender Service may establish a 
program substantially similar to that established under 
subchapter II of chapter 35 of title 5, United States Code.

                       Explanation of Amendments

    No amendments were offered on H.R. 1003.

                        Committee Consideration

    On February 14, 2017, the Committee met in open session and 
ordered reported favorably the bill, H.R. 1003, by voice vote, 
a quorum being present.

                            Roll Call Votes

    There were no recorded votes during consideration of H.R. 
1003.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
This bill provides the District of Columbia Courts System and 
Public Defender Service with authority to create a voluntary 
separation incentive payments program. As such, this bill does 
not relate to employment or access to public services and 
accommodations.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goal or objective of this bill is to authorize the 
establishment of a program of voluntary separation incentive 
payments for nonjudicial employees of the District Courts 
System and employees of the District of Columbia Public 
Defender Service.

                    Duplication of Federal Programs

    No provision of this bill establishes or reauthorizes a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

                  Disclosure of Directed Rule Makings

    The Committee estimates that enacting this bill does not 
direct the completion of any specific rule makings within the 
meaning of section 551 or title 5, United States Code.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of Section 5(b) of the appendix to title 5, 
United States Code.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement as to 
whether the provisions of the reported bill include unfunded 
mandates. In compliance with this requirement, the Committee 
has included below a letter received from the Congressional 
Budget Office.

                         Earmark Identification

    This bill does not include any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

                           Committee Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
this bill. However, clause 3(d)(2)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974, which the Committee has included below.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for this bill from the Director of 
Congressional Budget Office:

                                                    March 16, 2017.
Hon. Jason Chaffetz,
Chairman, Committee on Oversight and Government Reform,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1003, the District 
of Columbia Courts and Public Defender Service Voluntary 
Separation Incentive Payments Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Dan Ready.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 1003--District of Columbia Courts and Public Defender Service 
        Voluntary Separation Incentive Payments Act

    Summary: H.R. 1003 would amend the District of Columbia 
(D.C.) Code to permit the relevant authorities to establish a 
program to offer incentive payments to certain nonjudicial 
employees of the D.C. courts and the D.C. Public Defender 
Service for voluntarily separating from their positions. CBO 
estimates that enacting H.R. 1003 would increase direct 
spending for retirement annuities and related health benefits 
by $1 million in fiscal year 2018 and $7 million over the 2018-
2027 period. In addition, because those agencies are funded by 
federal appropriations, CBO estimates that the separation 
payments would increase discretionary outlays by $3 million 
over that same period, assuming availability of the necessary 
funds.
    Pay-as-you-go procedures apply because enacting the 
legislation would affect direct spending.
    CBO estimates that enacting the legislation would not 
increase net direct spending or on-budget deficits by more than 
$5 billion in any of the four consecutive 10-year periods 
beginning in 2028.
    H.R. 1003 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary effect of H.R. 1003 is shown in the following table. 
The costs of this legislation fall within budget functions 550 
(health), 600 (income security), 750 (administration of 
justice) and 800 (general government).

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                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2017   2018   2019   2020   2021   2022   2023   2024   2025   2026   2027  2017-2022  2017-2027
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                                                      INCREASES OR DECREASES (-) IN DIRECT SPENDING
 
Estimated Budget Authority...........................      0      1      2      2      2      1      *      *      *      *      *         8          7
Estimated Outlays....................................      0      1      2      2      2      1      *      *      *      *      *         8          7
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization Level........................      0      1      1      1      *      *      *      *      *      *      *         3          3
Estimated Outlays....................................      0      1      1      1      *      *      *      *      *      *      *         3          3
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Note: * = between -$500,000 and $500,000. Components may not sum to totals because of rounding.

    Basis of estimate: This estimate assumes that H.R. 1003 
will be enacted late in 2017 and that the necessary funds will 
be available each year.

Direct spending

    H.R. 1003 would authorize both the D.C. courts and the 
Public Defender Service to establish a program to provide 
voluntary separation payments for nonjudicial employees. This 
program would be similar to one used by most federal agencies 
to provide cash payments (often called ``buyouts'') of up to 
$25,000 to employees who voluntarily leave federal service. 
H.R. 1003 would not limit the number of employees who could 
receive such payments or the period of time during which 
buyouts could be offered.
    The two affected agencies have indicated that they would 
use the authority under H.R. 1003 to restructure their 
workforce to better match their needs. To achieve that end, the 
agencies would target separation payments to employees who are 
near retirement. Based on an analysis of data provided by the 
agencies, CBO estimates that over the next 10 years the 
incentive payments would induce about 120 employees of the D.C. 
courts and Public Defender Services to retire one or two years 
earlier than they otherwise would have.
    Employees of the D.C. courts and Public Defender Service 
participate in the federal government's retirement programs. 
Because H.R. 1003 would induce employees to enter the 
retirement rolls sooner than they otherwise would have, the 
government would be required to pay additional benefits 
initially.
    However, in subsequent years, benefit payments for 
individuals who accept the buyout would be smaller because 
retirement benefits are based on the number of years of service 
that the annuitant worked; that number would be somewhat lower 
as a result of the decision to accept early retirement. Thus, 
while the total amount of benefits paid would be higher in the 
near term, reduced annuities would lead to a small savings in 
later years. On net, CBO estimates that enacting the 
legislation would increase spending for retirement benefits by 
$5 million over 2018-2027 period.
    The agencies' employees also participate in the Federal 
Employees Health Benefits program (FEHB). When those employees 
retire, the federal government pays a portion of the premium; 
those payments are classified as direct spending. Thus, because 
of the increase in early retirements resulting from H.R. 1003, 
the legislation also would increase the federal government's 
contributions for annuitants under the FEHB program. CBO 
estimates that those contributions would increase direct 
spending by $2 million over the 2018-2027 period.

Spending subject to appropriation

    CBO estimates that implementing H.R. 1003 would increase 
spending to make buyout payments by about $1 million in fiscal 
year 2018 and $3 million over the 2018-2027 period, assuming 
the availability of appropriated funds. That cost stems from 
CBO's expectation that the buyout authority would be used for 
about 120 employees at a cost of $25,000 per employee.
    Providing such buyout authority could also have other 
effects on personnel costs at the two agencies (spending for 
the agencies is part of the federal budget). For example, if 
the agencies hired less expensive employees to replace retiring 
employees, they could save on personnel costs. However, those 
potential savings could be offset by other personnel decisions, 
such as promoting current employees into vacated, higher-paying 
positions; hiring additional people to fill agency needs; or 
rewarding high-performing employees with bonuses. CBO has no 
basis for predicting which of those actions, if any, the 
agencies might take. Therefore, CBO does not estimate any 
changes in spending resulting from other personnel decisions 
related to employee buyouts.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in the following table.

        CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 1003, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON GOVERNMENT REFORM ON FEBRUARY 14, 2017
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                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2017   2018   2019   2020   2021   2022   2023   2024   2025   2026   2027  2017-2022  2017-2027
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                                                          NET INCREASE IN THE ON-BUDGET DEFICIT
 
Statutory Pay-As-You-Go Impact.......................      0      1      2      2      2      1      0      0      0      0      0         8          7
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Note: Components may not sum to totals because of rounding.

    Increase in long-term direct spending and deficits: CBO 
estimates that enacting the legislation would not increase net 
direct spending or on-budget deficits by more than $5 billion 
in any of the four consecutive 10-year periods beginning in 
2028.
    Intergovernmental and private-sector impact: H.R. 1003 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would impose no costs on state, local, or 
tribal governments.
    Estimate prepared by: Federal costs: Dan Ready; Impact on 
state, local, and tribal governments: Zach Byrum; Impact on the 
private sector: Paige Piper/Bach.
    Estimate approved by: H. Samuel Papenfuss; Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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 (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

DISTRICT OF COLUMBIA OFFICIAL CODE

           *       *       *       *       *       *       *

TITLE 2--GOVERNMENT ADMINISTRATION

           *       *       *       *       *       *       *

CHAPTER 16--PUBLIC DEFENDER SERVICE

           *       *       *       *       *       *       *

Sec. 2-1605. Employment of attorneys and other personnel; compensation; 
                    private practice by attorneys not permitted

  (a) The Director shall employ a staff of attorneys and 
clerical and other personnel necessary to provide adequate and 
effective services. The Director shall make assignments of the 
personnel of the Service. The compensation of all employees of 
the Service, other than the Director and the Deputy Director, 
shall be fixed by the Director, but shall not exceed the 
compensation which may be paid to persons of similar 
qualifications and experience in the office of the United 
States Attorney for the District of Columbia. All attorneys 
employed by the Service to represent persons shall be members 
of the bar of the District of Columbia.
  (B) No attorney employed by the Service shall engage in the 
private practice of law or receive a fee for representing any 
person.
  (c)(1) Employees of the Service shall be treated as employees 
of the Federal Government solely for purposes of any of the 
following provisions of Title 5, United States Code: subchapter 
1 of Chapter 81 (relating to compensation for work injuries), 
Chapter 83 (relating to retirement), Chapter 84 (relating to 
Federal Employees' Retirement System), Chapter 87 (relating to 
life insurance), and Chapter 89 (relating to health insurance).
  (2) The Service shall make contributions under the provisions 
referred to in paragraph (1) of this subsection at the same 
rates applicable to agencies of the Federal Government.
  (3) An individual who is an employee of the Service on the 
date of the enactment of this subsection may make, within 60 
days after the issuance of regulations under paragraph (4) of 
this subsection, an election under Sec.  8351 or 8432 of Title 
5, United States Code, to participate in the Thrift Savings 
Plan for Federal employees.
  (4) This subsection shall apply with respect to all months 
beginning after the date on which the Director of the Office of 
Personnel Management issues regulations to carry out this 
subsection.
  (5) For purposes of vesting pursuant to Sec.  1-626.10(b), 
creditable service with the District for employees whose 
participation in the District Defined Contribution Plan ceases 
as a result of implementation of this subsection shall include 
service performed thereafter for the Service.
  (d) The Director may establish a program substantially 
similar to the program established under subchapter II of 
chapter 35 of title 5, United States Code, for employees of the 
Service, except that the maximum amount of the payment made 
under the program to any individual may not exceed the amount 
referred to in section 3523(b)(3)(B) of title 5, United States 
Code.

           *       *       *       *       *       *       *

TITLE 11--ORGANIZATION AND JURISDICTION OF THE COURTS

           *       *       *       *       *       *       *

       CHAPTER 17--ADMINISTRATION OF DISTRICT OF COLUMBIA COURTS

Sec.

                   SUBCHAPTER I--Court Administration

11-1701. Administration of District of Columbia court system.
     * * * * * * *

                     SUBCHAPTER II--Court Personnel.

     * * * * * * *
11-1726A. Voluntary separation incentive payments.
     * * * * * * *

SUBCHAPTER II--Court Personnel

           *       *       *       *       *       *       *

Sec. 11-1726A. Voluntary Separation Incentive Payments

  The Joint Committee on Judicial Administration may, by 
regulation, establish a program substantially similar to the 
program established under subchapter II of chapter 35 of title 
5, United States Code, for nonjudicial employees of the 
District of Columbia courts, except that the maximum amount of 
the payment made under the program to any individual may not 
exceed the amount referred to in section 3523(b)(3)(B) of title 
5, United States Code.

           *       *       *       *       *       *       *

                                  [all]
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