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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 868 Engrossed Amendment House (EAH)]

  2d Session

                                 S. 868

_______________________________________________________________________

                               AMENDMENT
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

                In the House of Representatives, U. S.,

                                                    September 25, 1996.

    Resolved, That the bill from the Senate (S. 868) entitled ``An Act to 
provide authority for leave transfer for Federal employees who are adversely 
affected by disasters or emergencies, and for other purposes'', do pass with the 
following

                               AMENDMENT:

    Strike out all after the enacting clause, and insert:

                   TITLE I--EMERGENCY LEAVE TRANSFERS

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Federal Employees Emergency Leave 
Transfer Act of 1996''.

SEC. 102. AUTHORITY.

    (a) In General.--Chapter 63 of title 5, United States Code, is 
amended by adding after subchapter V the following new subchapter:

      ``SUBCHAPTER VI--LEAVE TRANSFER IN DISASTERS AND EMERGENCIES

``Sec. 6391. Authority for leave transfer program in disasters and 
              emergencies
    ``(a) For the purpose of this section--
            ``(1) `employee' means an employee as defined in section 
        6331(1); and
            ``(2) `agency' means an Executive agency.
    ``(b) In the event of a major disaster or emergency, as declared by 
the President, that results in severe adverse effects for a substantial 
number of employees, the President may direct the Office of Personnel 
Management to establish an emergency leave transfer program under which 
any employee in any agency may donate unused annual leave for transfer 
to employees of the same or other agencies who are adversely affected 
by such disaster or emergency.
    ``(c) The Office of Personnel Management shall establish 
appropriate requirements for the operation of the emergency leave 
transfer program under subsection (b), including appropriate 
limitations on the donation and use of annual leave under the program. 
An employee may receive and use leave under the program without regard 
to any requirement that any annual leave and sick leave to a leave 
recipient's credit must be exhausted before any transferred annual 
leave may be used.
    ``(d) A leave bank established under subchapter IV may, to the 
extent provided in regulations prescribed by the Office of Personnel 
Management, donate annual leave to the emergency leave transfer program 
established under subsection (b).
    ``(e) Except to the extent that the Office of Personnel Management 
may prescribe by regulation, nothing in section 7351 shall apply to any 
solicitation, donation, or acceptance of leave under this section.
    ``(f) The Office of Personnel Management shall prescribe 
regulations necessary for the administration of this section.''.
    (b) Clerical Amendment.--The analysis for chapter 63 of title 5, 
United States Code, is amended by adding at the end thereof the 
following:

      ``SUBCHAPTER VI--LEAVE TRANSFER IN DISASTERS AND EMERGENCIES

``6391. Authority for leave transfer program in disasters and 
                            emergencies''.

SEC. 103. EFFECTIVE DATE.

    The amendments made by section 102 shall take effect on the date of 
enactment of this Act.

                     TITLE II--VETERANS' PREFERENCE

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Veterans Employment Opportunities 
Act of 1996''.

SEC. 202. EQUAL ACCESS FOR VETERANS.

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

SEC. 203. SPECIAL PROTECTIONS FOR PREFERENCE ELIGIBLES IN REDUCTIONS IN 
              FORCE.

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

SEC. 204. IMPROVED REDRESS FOR VETERANS.

    (a) In General.--Subchapter I of chapter 33 of title 5, United 
States Code, is amended by adding at the end the following:
``Sec. 3330a. Administrative redress
    ``(a)(1) Any preference eligible or other individual described in 
section 3304(f)(1) who alleges that an agency has violated such 
individual's rights under any statute or regulation relating to 
veterans' preference, or any right afforded such individual by section 
3304(f), may file a complaint with the Secretary of Labor.
    ``(2) A complaint under this subsection must be filed within 60 
days after the date of the alleged violation, and the Secretary shall 
process such complaint in accordance with sections 4322 (a) through 
(e)(1) and 4326 of title 38.
    ``(b)(1) If the Secretary of Labor is unable to resolve the 
complaint within 60 days after the date on which it is filed, the 
complainant may elect to appeal the alleged violation to the Merit 
Systems Protection Board in accordance with such procedures as the 
Merit Systems Protection Board shall prescribe, except that in no event 
may any such appeal be brought--
            ``(A) before the 61st day after the date on which the 
        complaint is filed under subsection (a); or
            ``(B) later than 15 days after the date on which the 
        complainant receives notification from the Secretary of Labor 
        under section 4322(e)(1) of title 38.
    ``(2) An appeal under this subsection may not be brought unless--
            ``(A) the complainant first provides written notification 
        to the Secretary of Labor of such complainant's intention to 
        bring such appeal; and
            ``(B) appropriate evidence of compliance with subparagraph 
        (A) is included (in such form and manner as the Merit Systems 
        Protection Board may prescribe) with the notice of appeal under 
        this subsection.
    ``(3) Upon receiving notification under paragraph (2)(A), the 
Secretary of Labor shall not continue to investigate or further attempt 
to resolve the complaint to which such notification relates.
    ``(c) This section shall not be construed to prohibit a preference 
eligible from appealing directly to the Merit Systems Protection Board 
from any action which is appealable to the Board under any other law, 
rule, or regulation, in lieu of administrative redress under this 
section.
``Sec. 3330b. Judicial redress
    ``(a) In lieu of continuing the administrative redress procedure 
provided under section 3330a(b), a preference eligible or other 
individual described in section 3304(f)(1) may elect, in accordance 
with this section, to terminate those administrative proceedings and 
file an action with the appropriate United States district court not 
later than 60 days after the date of the election.
    ``(b) An election under this section may not be made--
            ``(1) before the 121st day after the date on which the 
        appeal is filed with the Merit Systems Protection Board under 
        section 3330a(b); or
            ``(2) after the Merit Systems Protection Board has issued a 
        judicially reviewable decision on the merits of the appeal.
    ``(c) An election under this section shall be made, in writing, in 
such form and manner as the Merit Systems Protection Board shall by 
regulation prescribe. The election shall be effective as of the date on 
which it is received, and the administrative proceeding to which it 
relates shall terminate immediately upon the receipt of such election.
``Sec. 3330c. Remedy
    ``(a) If the Merit Systems Protection Board (in a proceeding under 
section 3330a) or a court (in a proceeding under section 3330b) 
determines that an agency has violated a right described in section 
3330a, the Board or court (as the case may be) shall order the agency 
to comply with such provisions and award compensation for any loss of 
wages or benefits suffered by the individual by reason of the violation 
involved. If the Board or court determines that such violation was 
willful, it shall award an amount equal to backpay as liquidated 
damages.
    ``(b) A preference eligible or other individual described in 
section 3304(f)(1) who prevails in an action under section 3330a or 
3330b shall be awarded reasonable attorney fees, expert witness fees, 
and other litigation expenses.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 33 of title 5, United States Code, is amended by adding after 
the item relating to section 3330 the following:

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

SEC. 205. EXTENSION OF VETERANS' PREFERENCE.

    (a) Amendment to Title 5, United States Code.--Paragraph (3) of 
section 2108 of title 5, United States Code, is amended by striking 
``the Federal Bureau of Investigation and Drug Enforcement 
Administration Senior Executive Service, or the General Accounting 
Office;'' and inserting ``or the Federal Bureau of Investigation and 
Drug Enforcement Administration Senior Executive Service;''.
    (b) Amendments to Title 3, United States Code.--
            (1) In general.--Chapter 2 of title 3, United States Code, 
        is amended by adding at the end the following:
``Sec. 115. Veterans' preference
    ``(a) Subject to subsection (b), appointments under sections 105, 
106, and 107 shall be made in accordance with section 2108, and 
sections 3309 through 3312, of title 5.
    ``(b) Subsection (a) shall not apply to any appointment to a 
position the rate of basic pay for which is at least equal to the 
minimum rate established for positions in the Senior Executive Service 
under section 5382 of title 5 and the duties of which are comparable to 
those described in section 3132(a)(2) of such title or to any other 
position if, with respect to such position, the President makes 
certification--
            ``(1) that such position is--
                    ``(A) a confidential or policy-making position; or
                    ``(B) a position for which political affiliation or 
                political philosophy is otherwise an important 
                qualification; and
            ``(2) that any individual selected for such position is 
        expected to vacate the position at or before the end of the 
        President's term (or terms) of office.
Each individual appointed to a position described in the preceding 
sentence as to which the expectation described in paragraph (2) applies 
shall be notified as to such expectation, in writing, at the time of 
appointment to such position.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 2 of title 3, United States Code, is 
        amended by adding at the end the following:

``115. Veterans' preference.''.
    (c) Legislative Branch Appointments.--
            (1) Definitions.--For the purposes of this subsection, the 
        terms ``employing office'', ``covered employee'', and ``Board'' 
        shall each have the meaning given such term by section 101 of 
        the Congressional Accountability Act of 1995 (2 U.S.C. 1301).
            (2) Rights and protections.--The rights and protections 
        established under section 2108, sections 3309 through 3312, and 
        subchapter I of chapter 35, of title 5, United States Code, 
        shall apply to covered employees.
            (3) Remedies.--
                    (A) In general.--The remedy for a violation of 
                paragraph (2) shall be such remedy as would be 
                appropriate if awarded under applicable provisions of 
                title 5, United States Code, in the case of a violation 
                of the relevant corresponding provision (referred to in 
                paragraph (2)) of such title.
                    (B) Procedure.--The procedure for consideration of 
                alleged violations of paragraph (2) shall be the same 
                as apply under section 401 of the Congressional 
                Accountability Act of 1995 (and the provisions of law 
                referred to therein) in the case of an alleged 
                violation of part A of title II of such Act.
            (4) Regulations to implement subsection.--
                    (A) In general.--The Board shall, pursuant to 
                section 304 of the Congressional Accountability Act of 
                1995 (2 U.S.C. 1384), issue regulations to implement 
                this subsection.
                    (B) Agency regulations.--The regulations issued 
                under subparagraph (A) shall be the same as the most 
                relevant substantive regulations (applicable with 
                respect to the executive branch) promulgated to 
                implement the statutory provisions referred to in 
                paragraph (2) except insofar as the Board may 
                determine, for good cause shown and stated together 
                with the regulation, that a modification of such 
                regulations would be more effective for the 
                implementation of the rights and protections under this 
                subsection.
                    (C) Coordination.--The regulations issued under 
                subparagraph (A) shall be consistent with section 225 
                of the Congressional Accountability Act of 1995 (2 
                U.S.C. 1361).
            (5) Applicability.--Notwithstanding any other provision of 
        this subsection, the term ``covered employee'' shall not, for 
        purposes of this subsection, include an employee--
                    (A) whose appointment is made by the President with 
                the advice and consent of the Senate;
                    (B) whose appointment is made by a Member of 
                Congress or by a committee or subcommittee of either 
                House of Congress; or
                    (C) who is appointed to a position, the duties of 
                which are equivalent to those of a Senior Executive 
                Service position (within the meaning of section 
                3132(a)(2) of title 5, United States Code).
            (6) Effective date.--Paragraphs (2) and (3) shall be 
        effective as of the effective date of the regulations under 
        paragraph (4).
    (d) Judicial Branch Appointments.--
            (1) In general.--Subject to paragraph (2), appointments to 
        positions in the judicial branch of the Government shall be 
        made in accordance with section 2108, and sections 3309 through 
        3312, of title 5, United States Code.
            (2) Reductions in force.--Subject to paragraph (2), 
        reductions in force in the judicial branch of the Government 
        shall provide preference eligibles with protections 
        substantially similar to those provided under subchapter I of 
        chapter 35 of title 5, United States Code.
            (3) Exclusions.--Paragraphs (1) and (2) shall not apply 
        to--
                    (A) an appointment made by the President, with the 
                advice and consent of the Senate;
                    (B) an appointment as a judicial officer;
                    (C) an appointment as a law clerk or secretary to a 
                justice or judge of the United States; or
                    (D) an appointment to a position, the duties of 
                which are equivalent to those of a Senior Executive 
                Service position (within the meaning of section 
                3132(a)(2) of title 5, United States Code).
            (4) Redress procedures.--The Judicial Conference of the 
        United States shall prescribe regulations under which redress 
        procedures (substantially similar to the procedures established 
        by the amendments made by section 204) shall be available for 
        alleged violations of any rights provided by this subsection.
            (5) Definitions.--For purposes of this subsection--
                    (A) the term ``judicial officer'' means a justice, 
                judge, or magistrate judge listed in subparagraph (A), 
                (B), (F), or (G) of section 376(a)(1) of title 28, 
                United States Code; and
                    (B) the term ``justice or judge of the United 
                States'' has the meaning given such term by section 451 
                of such title 28.

SEC. 206. VETERANS' PREFERENCE REQUIRED FOR REDUCTIONS IN FORCE IN THE 
              FEDERAL AVIATION ADMINISTRATION.

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

SEC. 207. DEFINITIONAL AMENDMENT.

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

       TITLE III--PROVISIONS RELATING TO THE THRIFT SAVINGS PLAN

  Subtitle A--Additional Investment Funds for the Thrift Savings Plan

SEC. 301. SHORT TITLE.

    This subtitle may be cited as the ``Thrift Savings Investment Funds 
Act of 1996''.

SEC. 302. ADDITIONAL INVESTMENT FUNDS FOR THE THRIFT SAVINGS PLAN.

    Section 8438 of title 5, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (5) through (8) as 
                paragraphs (6) through (9), respectively;
                    (B) by inserting after paragraph (4) the following 
                new paragraph:
            ``(5) the term `International Stock Index Investment Fund' 
        means the International Stock Index Investment Fund established 
        under subsection (b)(1)(E);'';
                    (C) in paragraph (8) (as redesignated by 
                subparagraph (A) of this paragraph) by striking out 
                ``and'' at the end thereof;
                    (D) in paragraph (9) (as redesignated by 
                subparagraph (A) of this paragraph)--
                            (i) by striking out ``paragraph (7)(D)'' in 
                        each place it appears and inserting in each 
                        such place ``paragraph (8)(D)''; and
                            (ii) by striking out the period and 
                        inserting in lieu thereof a semicolon and 
                        ``and''; and
                    (E) by adding at the end thereof the following new 
                paragraph:
            ``(10) the term `Small Capitalization Stock Index 
        Investment Fund' means the Small Capitalization Stock Index 
        Investment Fund established under subsection (b)(1)(D).''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B) by striking out 
                        ``and'' at the end thereof;
                            (ii) in subparagraph (C) by striking out 
                        the period and inserting in lieu thereof a 
                        semicolon; and
                            (iii) by adding at the end thereof the 
                        following new subparagraphs:
                    ``(D) a Small Capitalization Stock Index Investment 
                Fund as provided in paragraph (3); and
                    ``(E) an International Stock Index Investment Fund 
                as provided in paragraph (4).''; and
                    (B) by adding at the end thereof the following new 
                paragraphs:
            ``(3)(A) The Board shall select an index which is a 
        commonly recognized index comprised of common stock the 
        aggregate market value of which represents the United States 
        equity markets excluding the common stocks included in the 
        Common Stock Index Investment Fund.
            ``(B) The Small Capitalization Stock Index Investment Fund 
        shall be invested in a portfolio designed to replicate the 
        performance of the index in subparagraph (A). The portfolio 
        shall be designed such that, to the extent practicable, the 
        percentage of the Small Capitalization Stock Index Investment 
        Fund that is invested in each stock is the same as the 
        percentage determined by dividing the aggregate market value of 
        all shares of that stock by the aggregate market value of all 
        shares of all stocks included in such index.
            ``(4)(A) The Board shall select an index which is a 
        commonly recognized index comprised of stock the aggregate 
        market value of which is a reasonably complete representation 
        of the international equity markets excluding the United States 
        equity markets.
            ``(B) The International Stock Index Investment Fund shall 
        be invested in a portfolio designed to replicate the 
        performance of the index in subparagraph (A). The portfolio 
        shall be designed such that, to the extent practicable, the 
        percentage of the International Stock Index Investment Fund 
        that is invested in each stock is the same as the percentage 
        determined by dividing the aggregate market value of all shares 
        of that stock by the aggregate market value of all shares of 
        all stocks included in such index.''.

SEC. 303. ACKNOWLEDGEMENT OF INVESTMENT RISK.

    Section 8439(d) of title 5, United States Code, is amended by 
striking out ``Each employee, Member, former employee, or former Member 
who elects to invest in the Common Stock Index Investment Fund or the 
Fixed Income Investment Fund described in paragraphs (1) and (3),'' and 
inserting in lieu thereof ``Each employee, Member, former employee, or 
former Member who elects to invest in the Common Stock Index Investment 
Fund, the Fixed Income Investment Fund, the International Stock Index 
Investment Fund, or the Small Capitalization Stock Index Investment 
Fund, defined in paragraphs (1), (3), (5), and (10),''.

SEC. 304. EFFECTIVE DATE.

    This subtitle shall take effect on the date of enactment of this 
Act, and the Funds established under this subtitle shall be offered for 
investment at the earliest practicable election period (described in 
section 8432(b) of title 5, United States Code) as determined by the 
Executive Director in regulations.

             Subtitle B--Thrift Savings Accounts Liquidity

SEC. 311. SHORT TITLE.

    This subtitle may be cited as the ``Thrift Savings Plan Act of 
1996''.

SEC. 312. NOTICE TO SPOUSES FOR IN-SERVICE WITHDRAWALS; DE MINIMUS 
              ACCOUNTS; CIVIL SERVICE RETIREMENT SYSTEM PARTICIPANTS.

    Section 8351(b) of title 5, United States Code, is amended--
            (1) in paragraph (5)--
                    (A) in subparagraph (B)--
                            (i) by striking out ``An election, change 
                        of election, or modification (relating to the 
                        commencement date of a deferred annuity)'' and 
                        inserting in lieu thereof ``An election or 
                        change of election'';
                            (ii) by inserting ``or withdrawal'' after 
                        ``and a loan'';
                            (iii) by inserting ``and (h)'' after 
                        ``8433(g)'';
                            (iv) by striking out ``the election, change 
                        of election, or modification'' and inserting in 
                        lieu thereof ``the election or change of 
                        election''; and
                            (v) by inserting ``or withdrawal'' after 
                        ``for such loan''; and
                    (B) in subparagraph (D)--
                            (i) by inserting ``or withdrawals'' after 
                        ``of loans''; and
                            (ii) by inserting ``or (h)'' after 
                        ``8433(g)''; and
            (2) in paragraph (6)--
                    (A) by striking out ``$3,500 or less'' and 
                inserting in lieu thereof ``less than an amount that 
                the Executive Director prescribes by regulation''; and
                    (B) by striking out ``unless the employee or Member 
                elects, at such time and otherwise in such manner as 
                the Executive Director prescribes, one of the options 
                available under subsection (b)''.

SEC. 313. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELECTIONS, FEDERAL 
              EMPLOYEES RETIREMENT SYSTEM PARTICIPANTS.

    (a) In General.--Section 8433 of title 5, United States Code, is 
amended--
            (1) by striking out subsections (b) and (c) and inserting 
        in lieu thereof the following:
    ``(b) Subject to section 8435 of this title, any employee or Member 
who separates from Government employment is entitled and may elect to 
withdraw from the Thrift Savings Fund the balance of the employee's or 
Member's account as--
            ``(1) an annuity;
            ``(2) a single payment;
            ``(3) 2 or more substantially equal payments to be made not 
        less frequently than annually; or
            ``(4) any combination of payments as provided under 
        paragraphs (1) through (3) as the Executive Director may 
        prescribe by regulation.
    ``(c)(1) In addition to the right provided under subsection (b) to 
withdraw the balance of the account, an employee or Member who 
separates from Government service and who has not made a withdrawal 
under subsection (h)(1)(A) may make one withdrawal of any amount as a 
single payment in accordance with subsection (b)(2) from the employee's 
or Member's account.
    ``(2) An employee or Member may request that the amount withdrawn 
from the Thrift Savings Fund in accordance with subsection (b)(2) be 
transferred to an eligible retirement plan.
    ``(3) The Executive Director shall make each transfer elected under 
paragraph (2) directly to an eligible retirement plan or plans (as 
defined in section 402(c)(8) of the Internal Revenue Code of 1986) 
identified by the employee, Member, former employee, or former Member 
for whom the transfer is made.
    ``(4) A transfer may not be made for an employee, Member, former 
employee, or former Member under paragraph (2) until the Executive 
Director receives from that individual the information required by the 
Executive Director specifically to identify the eligible retirement 
plan or plans to which the transfer is to be made.'';
            (2) in subsection (d)--
                    (A) in paragraph (1) by striking out ``Subject to 
                paragraph (3)(A)'' and inserting in lieu thereof 
                ``Subject to paragraph (3)'';
                    (B) by striking out paragraph (2) and redesignating 
                paragraph (3) as paragraph (2); and
                    (C) in paragraph (2) (as redesignated under 
                subparagraph (B) of this paragraph)--
                            (i) in subparagraph (A) by striking out 
                        ``(A)''; and
                            (ii) by striking out subparagraph (B);
            (3) in subsection (f)(1)--
                    (A) by striking out ``$3,500 or less'' and 
                inserting in lieu thereof ``less than an amount that 
                the Executive Director prescribes by regulation; and
                    (B) by striking out ``unless the employee or Member 
                elects, at such time and otherwise in such manner as 
                the Executive Director prescribes, one of the options 
                available under subsection (b), or'' and inserting a 
                comma;
            (4) in subsection (f)(2)--
                    (A) by striking out ``February 1'' and inserting in 
                lieu thereof ``April 1'';
                    (B) in subparagraph (A)--
                            (i) by striking out ``65'' and inserting in 
                        lieu thereof ``70\1/2\''; and
                            (ii) by inserting ``or'' after the 
                        semicolon;
                    (C) by striking out subparagraph (B); and
                    (D) by redesignating subparagraph (C) as 
                subparagraph (B);
            (5) in subsection (g)--
                    (A) in paragraph (1) by striking out ``after 
                December 31, 1987, and'', and by adding at the end of 
                the paragraph the following sentence: ``Before a loan 
                is issued, the Executive Director shall provide in 
                writing the employee or Member with appropriate 
                information concerning the cost of the loan relative to 
                other sources of financing, as well as the lifetime 
                cost of the loan, including the difference in interest 
                rates between the funds offered by the Thrift Savings 
                Fund, and any other effect of such loan on the 
                employee's or Member's final account balance.''; and
                    (B) by striking out paragraph (2) and redesignating 
                paragraphs (3) through (5) as paragraphs (2) through 
                (4), respectively; and
            (6) by adding after subsection (g) the following new 
        subsection:
    ``(h)(1) An employee or Member may apply, before separation, to the 
Board for permission to withdraw an amount from the employee's or 
Member's account based upon--
            ``(A) the employee or Member having attained age 59\1/2\; 
        or
            ``(B) financial hardship.
    ``(2) A withdrawal under paragraph (1)(A) shall be available to 
each eligible participant one time only.
    ``(3) A withdrawal under paragraph (1)(B) shall be available only 
for an amount not exceeding the value of that portion of such account 
which is attributable to contributions made by the employee or Member 
under section 8432(a) of this title.
    ``(4) Withdrawals under paragraph (1) shall be subject to such 
other conditions as the Executive Director may prescribe by regulation.
    ``(5) A withdrawal may not be made under this subsection unless the 
requirements of section 8435(e) of this title are satisfied.''.
    (b) Invalidity of Certain Prior Elections.--Any election made under 
section 8433(b)(2) of title 5, United States Code (as in effect before 
the effective date of this subtitle), with respect to an annuity which 
has not commenced before the implementation date of this subtitle as 
provided by regulation by the Executive Director in accordance with 
section 318 shall be invalid.

SEC. 314. SURVIVOR ANNUITIES FOR FORMER SPOUSES; NOTICE TO FEDERAL 
              EMPLOYEES RETIREMENT SYSTEM SPOUSES FOR IN-SERVICE 
              WITHDRAWALS.

    Section 8435 of title 5, United States Code, is amended--
            (1) in subsection (a)(1)(A)--
                    (A) by striking out ``may make an election under 
                subsection (b)(3) or (b)(4) of section 8433 of this 
                title or change an election previously made under 
                subsection (b)(1) or (b)(2) of such section'' and 
                inserting in lien thereof ``may withdraw all or part of 
                a Thrift Savings Fund account under subsection (b) (2), 
                (3), or (4) of section 8433 of this title or change a 
                withdrawal election''; and
                    (B) by adding at the end thereof ``A married 
                employee or Member (or former employee or Member) may 
                make a withdrawal from a Thrift Savings Fund account 
                under subsection (c)(1) of section 8433 of this title 
                only if the employee or Member (or former employee or 
                Member) satisfies the requirements of subparagraph 
                (B).'';
            (2) in subsection (c)--
                    (A) in paragraph (1)--
                            (i) by striking out ``An election, change 
                        of election, or modification of the 
                        commencement date of a deferred annuity'' and 
                        inserting in lieu thereof ``An election or 
                        change of election''; and
                            (ii) by striking out ``modification, or 
                        transfer'' and inserting in lien thereof ``or 
                        transfer''; and
                    (B) in paragraph (2) in the matter following 
                subparagraph (B)(ii) by striking out ``modification,'';
            (3) in subsection (e)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A)--
                                    (I) by inserting ``or withdrawal'' 
                                after ``A loan'';
                                    (II) by inserting ``and (h)'' after 
                                ``8433(g)''; and
                                    (III) by inserting ``or 
                                withdrawal'' after ``such loan'';
                            (ii) in subparagraph (B) by inserting ``or 
                        withdrawal'' after ``loan''; and
                            (iii) in subparagraph (C)--
                                    (I) by inserting ``or withdrawal'' 
                                after ``to a loan''; and
                                    (II) by inserting ``or withdrawal'' 
                                after ``for such loan''; and
                    (B) in paragraph (2)--
                            (i) by inserting ``or withdrawal'' after 
                        ``loan''; and
                            (ii) by inserting ``and (h)'' after 
                        ``8344(g)''; and
            (4) in subsection (g)--
                    (A) by inserting ``or withdrawals'' after 
                ``loans''; and
                    (B) by inserting ``and (h)'' after ``8344(g)''.

SEC. 315. DE MINIMUS ACCOUNTS RELATING TO THE JUDICIARY.

    (a) Justices and Judges.--Section 8440a(b)(7) of title 5, United 
States Code, is amended--
            (1) by striking out ``$3,500 or less'' and inserting in 
        lieu thereof ``less than an amount that the Executive Director 
        prescribes by regulation''; and
            (2) by striking out ``unless the justice or judge elects, 
        at such time and otherwise in such manner as the Executive 
        Director prescribes, one of the options available under section 
        8433(b)''.
    (b) Bankruptcy Judges and Magistrates.--Section 8440b(b) of title 
5, United States Code, is amended--
            (1) in paragraph (7) in the first sentence by inserting 
        ``of the distribution'' after ``equal to the amount''; and
            (2) in paragraph (8)--
                    (A) by striking out ``$3,500 or less'' and 
                inserting in lieu thereof ``less than an amount that 
                the Executive Director prescribes by regulation''; and
                    (B) by striking out ``unless the bankruptcy judge 
                or magistrate elects, at such time and otherwise in 
                such manner as the Executive Director prescribes, one 
                of the options available under subsection (b)''.
    (c) Federal Claims Judges.--Section 8440c(b) of title 5, United 
States Code, is amended--
            (1) in paragraph (7) in the first sentence by inserting 
        ``of the distribution'' after ``equal to the amount''; and
            (2) in paragraph (8)--
                    (A) by striking out ``$3,500 or less'' and 
                inserting in lieu thereof ``less than an amount that 
                the Executive Director prescribes by regulation''; and
                    (B) by striking out ``unless the judge elects, at 
                such time and otherwise in such manner as the Executive 
                Director prescribes, one of the options available under 
                section 8433(b)''.

SEC. 316. DEFINITION OF BASIC PAY.

    (a) In General.--(1) Section 8401(4) of title 5, United States 
Code, is amended by striking out ``except as provided in subchapter III 
of this chapter,''.
    (2) Section 8431 of title 5, United States Code, is repealed.
    (b) Technical and Conforming Amendments.--(1) The table of sections 
for chapter 84 of title 5, United States Code, is amended by striking 
out the item relating to section 8431.
    (2) Section 5545a(h)(2)(A) of title 5, United States Code, is 
amended by striking out ``8431,''.
    (3) Section 615(f) of the Treasury, Postal Service, and General 
Government Appropriations Act, 1996 (Public Law 104-52; 109 Stat. 500; 
5 U.S.C. 5343 note) is amended by striking out ``section 8431 of title 
5, United States Code,''.

SEC. 317. ELIGIBLE ROLLOVER DISTRIBUTIONS.

    Section 8432 of title 5, United States Code, is amended by adding 
at the end the following:
    ``(j)(1) For the purpose of this subsection--
            ``(A) the term `eligible rollover distribution' has the 
        meaning given such term by section 402(c)(4) of the Internal 
        Revenue Code of 1986; and
            ``(B) the term `qualified trust' has the meaning given such 
        term by section 402(c)(8) of the Internal Revenue Code of 1986.
    ``(2) An employee or Member may contribute to the Thrift Savings 
Fund an eligible rollover distribution from a qualified trust. A 
contribution made under this subsection shall be made in the form 
described in section 401(a)(31) of the Internal Revenue Code of 1986. 
In the case of an eligible rollover distribution, the maximum amount 
transferred to the Thrift Savings Fund shall not exceed the amount 
which would otherwise have been included in the employee's or Member's 
gross income for Federal income tax purposes.
    ``(3) The Executive Director shall prescribe regulations to carry 
out this subsection.''.

SEC. 318. EFFECTIVE DATE.

    This subtitle shall take effect on the date of the enactment of 
this Act, and withdrawals, loans, rollovers, and elections as provided 
under the amendments made by this subtitle shall be made at the 
earliest practicable date as determined by the Executive Director in 
regulations.

  TITLE IV--PROVISIONS RELATING TO THE CONVERSION OF CERTAIN EXCEPTED 
       SERVICE POSITIONS IN THE UNITED STATES FIRE ADMINISTRATION

SEC. 401. CONVERSION OF POSITIONS.

    (a) In General.--No later than the date described under subsection 
(d)(1), the Director of the Federal Emergency Management Agency and the 
Director of the Office of Personnel Management shall take such actions 
as necessary to convert each excepted service position established 
before the date of the enactment of this Act under section 7(c)(4) of 
the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
2206(c)(4)) to a competitive service position.
    (b) Effect on Employees.--Any employee employed on the date of the 
enactment of this Act in an excepted service position converted under 
subsection (a)--
            (1) shall remain employed in the competitive service 
        position so converted without a break in service;
            (2) by reason of such conversion, shall have no--
                    (A) diminution of seniority;
                    (B) reduction of cumulative years of service; and
                    (C) requirement to serve an additional probationary 
                period applied; and
            (3) shall retain their standing and participation with 
        respect to chapter 83 or 84 of title 5, United States Code, 
        relating to Federal retirement.
    (c) Prospective Competitive Service Positions.--Section 7(c)(4) of 
the Federal Fire Prevention and Control Act of 1974 (15 U.S.C. 
2206(c)(4)) is amended to read as follows:
            ``(4) appoint faculty members to competitive service 
        positions and with respect to temporary and intermittent 
        services, to make appointments of consultants to the same 
        extent as is authorized by section 3109 of title 5, United 
        States Code;''.
    (d) Effective Date.--(1) Except as provided under paragraph (2), 
this section shall take effect on the first day of the first pay 
period, applicable to the positions described under subsection (a), 
beginning after the date of the enactment of this Act.
    (2)(A) The Director of the Federal Emergency Management Agency and 
the Director of the Office of Personnel Management shall take such 
actions as directed under subsection (a) on and after the date of the 
enactment of this Act.
    (B) Subsection (c) shall take effect on the date of the enactment 
of this Act.
            Attest:

                                                                 Clerk.
```