(3) such other employee as the head of the
agency considers appropriate
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘agency’’ means an Executive
agency, as defined by section 105 of title 5, United
States Code;
(2) the term ‘‘law enforcement officer’’ means
an employee, the duties of whose position are pri-
marily the investigation, apprehension, prosecution,
or detention of individuals suspected or convicted of
offenses against the criminal laws of the United
States, including any law enforcement officer under
section 8331(20) or 8401(17) of such title 5;
(3) the terms ‘‘supervisor’’ and ‘‘management
official’’ have the respective meanings given them by
section 7103(a) of such title 5; and
(4) the term ‘‘professional liability insurance’’
means insurance which provides coverage for—
(A) legal liability for damages due to inju-
ries to other persons, damage to their property,
or other damage or loss to such other persons
(including the expenses of litigation and settle-
ment) resulting from or arising out of any
tortious act, error, or omission of the covered
individual (whether common law, statutory, or
constitutional) while in the performance of such
individual’s official duties as a qualified em-
ployee; and
(B) the cost of legal representation for the
covered individual in connection with any ad-
ministrative or judicial proceeding (including
any investigation or disciplinary proceeding) re-
lating to any act, error, or omission of the cov-
ered individual while in the performance of such
individual’s official duties as a qualified em-
ployee, and other legal costs and fees relating
to any such administrative or judicial proceed-
ing.
(d) POLICY LIMITS.—
(1) IN GENERAL.—Reimbursement under this
section shall not be available except in the case of
any professional liability insurance policy providing
for—
(A) not to exceed $1,000,000 of coverage
for legal liability (as described in subsection
(c)(4)(A)) per occurrence per year; and
(B) not to exceed $100,000 of coverage for
the cost of legal representation (as described in
subsection (c)(4)(B)) per occurrence per year.
(2) ADJUSTMENTS.—The head of an agency
may from time to time adjust the respective dollar
amount limitations applicable under this subsection
to the extent that the head of such agency considers
appropriate to reflect inflation.
SEC. 602. EMPLOYMENT RIGHTS FOLLOWING CONVERSION
TO CONTRACT.
(a) IN GENERAL.—An employee whose position is
abolished because an activity performed by an Executive
agency (within the meaning of section 105 of title 5, Unit-
ed States Code) is converted to contract shall receive from
the contractor an offer in good faith of a right of first
refusal of employment under the contract for a position
for which the employee is deemed qualified based upon
previous knowledge, skills, abilities, and experience. The
contractor shall not offer employment under the contract
to any person prior to having complied fully with this obli-
gation, except as provided in subsection (b), or unless no
employee whose position is abolished because such activity
has been converted to contract can demonstrate appro-
priate qualifications for the position.
(b) EXCEPTION.—Notwithstanding the contractor’s
obligation under subsection (a), the contractor is not re-
quired to offer a right of first refusal to any employee who,
in the 12 months preceding conversion to contract, has
been the subject of an adverse personnel action related to
misconduct or has received a less than fully successful per-
formance rating.
(c) LIMITATION.—No employee shall have a right to
more than 1 offer under this section based on any particu-
lar separation due to the conversion of an activity to con-
tract.
(d) REGULATIONS.—Regulations to carry out this
section may be prescribed by the President.
SEC. 603. DEBARMENT OF HEALTH CARE PROVIDERS
FOUND TO HAVE ENGAGED IN FRAUDULENT
PRACTICES.
(a) IN GENERAL.—Section 8902a of title 5, United
States Code, is amended—
(1) in subsection (a)(2)(A) by striking ‘‘sub-
section (b) or (c)’’ and inserting ‘‘subsection (b), (c),
or (d)’’;
(2) in subsection (b)—
(A) by striking ‘‘may’’ and inserting
‘‘shall’’ in the matter before paragraph (1); and
(B) by amending paragraph (5) to read as
follows:
‘‘(5) Any provider that is currently suspended
or excluded from participation under any program of
the Federal Government involving procurement or
nonprocurement activities.’’;
(3) by redesignating subsections (c) through (i)
as subsections (d) through (j), respectively, and by
inserting after subsection (b) the following:
‘‘(c) The Office may bar the following providers of
health care services from participating in the program
under this chapter:
‘‘(1) Any provider—
‘‘(A) whose license to provide health care
services or supplies has been revoked, sus-
pended, restricted, or not renewed, by a State
licensing authority for reasons relating to the
provider’s professional competence, professional
performance, or financial integrity; or
‘‘(B) that surrendered such a license while
a formal disciplinary proceeding was pending
before such an authority, if the proceeding con-
cerned the provider’s professional competence,
professional performance, or financial integrity.
‘‘(2) Any provider that is an entity directly or
indirectly owned, or with a 5 percent or more con-
trolling interest, by an individual who is convicted of
any offense described in subsection (b), against
whom a civil monetary penalty has been assessed
under subsection (d), or who has been excluded from
participation under this chapter.
‘‘(3) Any provider that the Office determines, in
connection with claims presented under this chapter,
has charged for health care services or supplies in
an amount substantially in excess of such provider’s
customary charges for such services or supplies (un-
less the Office finds there is good cause for such
charge), or charged for health care services or sup-
plies which are substantially in excess of the needs
of the covered individual or which are of a quality
that fails to meet professionally recognized stand-
ards for such services or supplies.
‘‘(4) Any provider that the Office determines
has committed acts described in subsection (d).’’;
(4) in subsection (d), as so redesignated by
paragraph (3), by amending paragraph (1) to read
as follows:
‘‘(1) in connection with claims presented under
this chapter, that a provider has charged for a
health care service or supply which the provider
knows or should have known involves—
‘‘(A) an item or service not provided as
claimed;
‘‘(B) charges in violation of applicable
charge limitations under section 8904(b); or
‘‘(C) an item or service furnished during a
period in which the provider was excluded from
participation under this chapter pursuant to a
determination by the Office under this section,
other than as permitted under subsection
(g)(2)(B);’’;
(5) in subsection (f), as so redesignated by
paragraph (3), by inserting ‘‘(where such debarment
is not mandatory)’’ after ‘‘under this section’’ the
first place it appears;
(6) in subsection (g), as so redesignated by
paragraph (3)—
(A) by striking ‘‘(g)(1)’’ and all that fol-
lows through the end of paragraph (1) and in-
serting the following:
‘‘(g)(1)(A) Except as provided in subparagraph (B),
debarment of a provider under subsection (b) or (c) shall
be effective at such time and upon such reasonable notice
to such provider, and to carriers and covered individuals,
as shall be specified in regulations prescribed by the Of-
fice. Any such provider that is excluded from participation
may request a hearing in accordance with subsection
(h)(1).
‘‘(B) Unless the Office determines that the health or
safety of individuals receiving health care services war-
rants an earlier effective date, the Office shall not make
a determination adverse to a provider under subsection
(c)(4) or (d) until such provider has been given reasonable
notice and an opportunity for the determination to be
made after a hearing as provided in accordance with sub-
section (h)(1).’’;
(B) in paragraph (3)—
(i) by inserting ‘‘of debarment’’ after
‘‘notice’’; and
(ii) by adding at the end the follow-
ing: ‘‘In the case of a debarment under
paragraphs (1) through (4) of subsection
(b), the minimum period of exclusion shall
not be less than 3 years, except as pro-
vided in paragraph (4)(B)(ii).’’; and
(C) in paragraph (4)(B)(i)(I) by striking
‘‘subsection (b) or (c)’’ and inserting ‘‘sub-
section (b), (c), or (d)’’;
(7) in subsection (h), as so redesignated by
paragraph (3), by striking ‘‘(h)(1)’’ and all that fol-
lows through the end of paragraph (2) and inserting
the following:
‘‘(h)(1) Any provider of health care services or sup-
plies that is the subject of an adverse determination by
the Office under this section shall be entitled to reasonable
notice and an opportunity to request a hearing of record,
and to judicial review as provided in this subsection after
the Office renders a final decision. The Office shall grant
a request for a hearing upon a showing that due process
rights have not previously been afforded with respect to
any finding of fact which is relied upon as a cause for
an adverse determination under this section. Such hearing
shall be conducted without regard to subchapter II of
chapter 5 and chapter 7 of this title by a hearing officer
who shall be designated by the Director of the Office and
who shall not otherwise have been involved in the adverse
determination being appealed. A request for a hearing
under this subsection must be filed within such period and
in accordance with such procedures as the Office shall pre-
scribe by regulation.
‘‘(2) Any provider adversely affected by a final deci-
sion under paragraph (1) made after a hearing to which
such provider was a party may seek review of such deci-
sion in the United States District Court for the District
of Columbia or for the district in which the plaintiff re-
sides or has his principal place of business by filing a no-
tice of appeal in such court within 60 days from the date
the decision is issued and simultaneously sending copies
of such notice by certified mail to the Director of the Of-
fice and to the Attorney General. In answer to the appeal,
the Director of the Office shall promptly file in such court
a certified copy of the transcript of the record, if the Office
conducted a hearing, and other evidence upon which the
findings and decision complained of are based. The court
shall have power to enter, upon the pleadings and evidence
of record, a judgment affirming, modifying, or setting
aside, in whole or in part, the decision of the Office, with
or without remanding the cause for a rehearing. The dis-
trict court shall not set aside or remand the decision of
the Office unless there is not substantial evidence on the
record, taken as a whole, to support the findings by the
Office of a cause for action under this section or unless
action taken by the Office constitutes an abuse of discre-
tion.’’; and
(8) in subsection (i), as so redesignated by
paragraph (3)—
(A) by striking ‘‘subsection (c)’’ and in-
serting ‘‘subsection (d)’’; and
(B) by adding at the end the following:
‘‘The amount of a penalty or assessment as fi-
nally determined by the Office, or other amount
the Office may agree to in compromise, may be