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such terms as it deems appropriate, subject only to
applicable laws;
‘‘(12) except as otherwise provided in section
10101 of the Omnibus Budget Reconciliation Act of
1990, as amended (35 U.S.C. 41 note) may, as a fi-
nancially self-sustaining Federal organization with-
out reliance upon general taxpayer revenues, retain
and utilize all of its revenues and receipts, including
revenues from the sale, lease, or disposal of any
property, real, personal or mixed, or any interest
therein, of the Organization, including research and
development and capital investment;
‘‘(13) shall have the priority of the United
States with respect to the payment of debts out of
bankrupt, insolvent, and decedents’ estates;
‘‘(14) may accept monetary gifts or donations
of services, or of property, real, personal, mixed, tan-
gible or intangible, in aid of any purposes herein au-
thorized. The Chief Executive Officer shall establish
written rules setting forth the criteria to be used in
determining whether or not the acceptance of con-
tributions of monetary gifts or donations or services,
or of property, real, personal, mixed, tangible or in-
tangible under this subsection would reflect unfavor-
ably upon the ability of the Organization, or any em-
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ployee of the Organization, to carry out its respon-
sibilities of official duties in a fair and objective
manner, or would compromise the integrity or the
appearance of the integrity of its programs or any
official involved in those programs;
‘‘(15) may execute, in accordance with its by-
laws, rules and regulations, all instruments nec-
essary and appropriate in the exercise of any of its
powers;
‘‘(16) may provide for liability insurance and
insurance against any loss in connection with its
property, other assets or operations either by con-
tract or by self-insurance; and
‘‘(17) shall pay any settlement or judgment en-
tered against it or arising from the act or omission
of any officer or employee of the Organization from
the funds of the Organization and not from amounts
available under section 1304 of title 31.’’.
SEC. 103. ORGANIZATION AND MANAGEMENT.
Section 3 of title 35, United States Code, is amended
to read as follows:
‘‘§ 3. Officers, employees, and Inspector General
‘‘(a) OFFICERS.—
‘‘(1) CHIEF EXECUTIVE OFFICER.—The man-
agement of the Organization shall be vested in a
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Chief Executive Officer who shall be a citizen of the
United States and who shall be appointed by the
Secretary of Commerce. The Chief Executive Officer
shall be a person who, by reason of professional ex-
perience regarding patents or trademarks and of
management experience, is especially qualified to
manage the Organization: Provided, however, That
the office of Chief Executive Officer becomes vacant
or the Chief Executive Officer becomes incapaci-
tated, the Secretary may appoint an existing officer
of the Organization to act in such office until the of-
fice is filled.
‘‘(2) OTHER
OFFICERS.—The Secretary shall
appoint an officer principally responsible for the ex-
amination of patent applications, who shall be the
principal adviser to the Chief Executive Officer on
all issues affecting the Organization’s patent exam-
ining operations, and an officer principally respon-
sible for the examination of trademark applications,
who shall be the principal advisor to the Chief Exec-
utive Officer on all issues affecting the Organiza-
tion’s trademark examining operations.
‘‘(b) DUTIES.—The Chief Executive Officer—
‘‘(1) shall be responsible for the management
and direction of the Organization, including the ex-
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amination of patent and trademark applications, and
may delegate these responsibilities to the officers
and employees of the Organization whose perform-
ance of these duties shall be subject to the Chief Ex-
ecutive Officer’s review;
‘‘(2) shall be subject to the direction of the
Under Secretary of Commerce for Intellectual Prop-
erty on patent and trademark policy matters;
‘‘(3) shall receive as basic compensation for a
calendar year an amount not to exceed the equiva-
lent of the annual rate of basic pay for level I of the
Executive Schedule under section 5312 of title 5
and, in addition, may receive as a bonus awarded by
the Secretary, an amount up to the equivalent of the
annual rate of basic pay for level I, based upon the
Secretary’s evaluation of the Chief Executive Offi-
cer’s performance—
‘‘(A) as defined in an annual performance
agreement between the Chief Executive Officer
and the Secretary incorporating measurable
goals in such specific areas as productivity,
cycle times, efficiency, cost-reduction, innovative
ways of delivering patent and trademark serv-
ices, and customer satisfaction, as delineated in
an annual performance plan, and
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‘‘(B) as reflected in an annual report on
the results of the Organization’s performance, a
copy of which shall be provided to the Office of
Management and Budget and the Congress:
Provided, however, That the Secretary shall provide
the Director of the Office of Management and Budg-
et the opportunity to review, before any bonus is
awarded, the annual performance standards, the
level of the proposed bonus, and any information
that the Secretary forwards regarding the bonus;
‘‘(4) shall serve on the basis of a six-year con-
tract with the Secretary, so long as performance, as
set forth in the annual performance agreement, is
satisfactory, and
‘‘(5) shall, before taking office, take an oath to
discharge faithfully the duties thereof.
‘‘(c) STATUS OF OFFICERS AND EMPLOYEES.—Offi-
cers and employees of the Organization shall be officers
and employees of the United States as defined by sections
2104 and 2105, title 5. Except as otherwise provided in
this section, officers and employees of the Organization
shall be subject to the provisions of title 5 relating to Fed-
eral employees.
‘‘(d) The Chief Executive Officer shall affix the com-
pensation and number of, appoint, and direct all employ-
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ees of the Organization that he deems necessary to effect
the provisions of this title, consistent with chapter 23, title
5, United States Code; such determination of number, ap-
pointment, and compensation (including any awards) to
be made without regard to any other of the provisions of
title 5, United States Code, except that the principle of
veteran’s preference shall apply with regard to appoint-
ment.
‘‘(e) LIMIT ON COMPENSATION.—Except as otherwise
provided by law, no officer or employee of the Organiza-
tion other than the Chief Executive Officer shall receive
basic compensation for a calendar year that exceeds the
equivalent of the basic rate of pay for the Senior Executive
Service ES–6 (5 U.S.C. 5382). Total compensation, in-
cluding compensation based on performance (but not in-
cluding benefits or contribution to retirement systems),
may not exceed the equivalent of the basic rate of pay
for level I of the Executive Schedule under section 5312
of title 5.
‘‘(f) ESTABLISHMENT OF CLASSIFICATION, APPOINT-
MENT, AND COMPENSATION SYSTEMS.—Notwithstanding
the provisions of title 5, United States Code, the Chief
Executive Officer shall have sole and exclusive discretion:
‘‘(1) over the establishment, amendment, or re-
peal of any position classification system, any system