108TH CONGRESS
2D SESSION
H. R. 2751
AN ACT
To provide new human capital flexibilities with
respect to the GAO, and for other purposes.
108TH CONGRESS
2D SESSION
H. R. 2751
AN ACT
To provide new human capital flexibilities with respect to
the GAO, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENT OF TITLE 31.
(a) SHORT TITLE.—This Act may be cited as the
‘‘GAO Human Capital Reform Act of 2004’’.
(b) AMENDMENT OF TITLE 31.—Except as otherwise
expressly provided, whenever in this Act an amendment
is expressed in terms of an amendment to a section or
other provision, the reference shall be considered to be
made to a section or other provision of title 31, United
States Code.
SEC. 2. AMENDMENTS TO PUBLIC LAW 106–303.
(a) AUTHORITIES MADE PERMANENT.—Sections 1
and 2 of Public Law 106–303 (5 U.S.C. 8336 note and
5597 note) are amended by striking ‘‘for purposes of the
period beginning on the date of the enactment of this Act
and ending on December 31, 2003’’ each place it appears
and inserting ‘‘October 13, 2000’’.
(b) SENSE OF CONGRESS.—
(1) VOLUNTARY EARLY RETIREMENT AUTHOR-
ITY.—Section 1 of Public Law 106–303 is amended
by adding at the end the following:
‘‘(e) SENSE OF CONGRESS.—It is the sense of Con-
gress that the implementation of this section is intended
to reshape the General Accounting Office workforce and
not downsize the General Accounting Office workforce.’’.
(2) VOLUNTARY SEPARATION INCENTIVE PAY-
MENTS.—Section 2 of Public Law 106–303 is
amended by adding at the end the following:
‘‘(g) SENSE OF CONGRESS.—It is the sense of Con-
gress that the implementation of this section is intended
to reshape the General Accounting Office workforce and
not downsize the General Accounting Office workforce.’’.
(c) 
ADDITIONAL
LIMITATION
RELATING
TO
VSIPS.—Section 2(b) of Public Law 106–303 is amended
by striking paragraph (2) and inserting the following:
‘‘(2) subsection (a)(2)(G) of such section shall
be applied—
‘‘(A) by construing the citations therein to
be references to the appropriate authorities in
connection with employees of the General Ac-
counting Office; and
‘‘(B) by deeming such subsection to be
amended by striking ‘Code.’ and inserting
‘Code, or who, during the thirty-six month pe-
riod preceding the date of separation, per-
formed service for which a student loan repay-
ment benefit was or is to be paid under section
5379 of title 5, United States Code.’;’’.
SEC. 3. ANNUAL PAY ADJUSTMENTS.
(a) OFFICERS AND EMPLOYEES GENERALLY.—Para-
graph (3) of section 732(c) is amended to read as follows:
‘‘(3) 
except 
as 
provided 
under 
section
733(a)(3)(B) of this title, basic rates of officers and
employees of the Office shall be adjusted annually to
such extent as determined by the Comptroller Gen-
eral, and in making that determination the Comp-
troller General shall consider—
‘‘(A) the principle that equal pay should be
provided for work of equal value within each
local pay area;
‘‘(B) the need to protect the purchasing
power of officers and employees of the Office,
taking into consideration the Consumer Price
Index or other appropriate indices;
‘‘(C) any existing pay disparities between
officers and employees of the Office and non-
Federal employees in each local pay area;
‘‘(D) the pay rates for the same levels of
work for officers and employees of the Office
and non-Federal employees in each local pay
area;
‘‘(E) the appropriate distribution of agency
funds between annual adjustments under this
section and performance-based compensation;
and
‘‘(F) such other criteria as the Comptroller
General considers appropriate, including, but
not limited to, the funding level for the Office,
amounts allocated for performance-based com-
pensation, and the extent to which the Office is
succeeding in fulfilling its mission and accom-
plishing its strategic plan;
notwithstanding any other provision of this para-
graph, an adjustment under this paragraph shall not
be applied in the case of any officer or employee
whose performance is not at a satisfactory level, as
determined by the Comptroller General for purposes
of such adjustment;’’.
(b) OFFICERS AND EMPLOYEES IN THE OFFICE SEN-
IOR EXECUTIVE SERVICE.—Subparagraph (B) of section
733(a)(3) is amended to read as follows:
‘‘(B) adjusted annually by the Comptroller
General after taking into consideration the fac-
tors listed under section 732(c)(3) of this title,
except that an adjustment under this subpara-
graph shall not be applied in the case of any of-
ficer or employee whose performance is not at
a satisfactory level, as determined by the Comp-
troller General for purposes of such adjust-
ment;’’.
(c) CONFORMING AMENDMENT.—Section 732(b)(6)
is amended by striking ‘‘title 5.’’ and inserting ‘‘title 5,
except as provided under subsection (c)(3) of this section
and section 733(a)(3)(B) of this title.’’.
SEC. 4. PAY RETENTION.
Paragraph (5) of section 732(c) is amended to read
as follows:
‘‘(5) the Comptroller General shall prescribe
regulations under which an officer or employee of
the Office shall be entitled to pay retention if, as a
result of any reduction-in-force or other workforce
adjustment procedure, position reclassification, or
other appropriate circumstances as determined by
the Comptroller General, such officer or employee is
placed in or holds a position in a lower grade or
band with a maximum rate of basic pay that is less
than the rate of basic pay payable to the officer or
employee immediately before the reduction in grade
or band; such regulations—
‘‘(A) shall provide that the officer or em-
ployee shall be entitled to continue receiving the
rate of basic pay that was payable to the officer
or employee immediately before the reduction in
grade or band until such time as the retained
rate becomes less than the maximum rate for
the grade or band of the position held by such
officer or employee; and
‘‘(B) shall include provisions relating to
the minimum period of time for which an offi-
cer or employee must have served or for which
the position must have been classified at the
higher grade or band in order for pay retention
to apply, the events that terminate the right to
pay retention (apart from the one described in
subparagraph (A)), and exclusions based on the
nature of an appointment; in prescribing regu-
lations under this subparagraph, the Comp-
troller General shall be guided by the provisions
of sections 5362 and 5363 of title 5.’’.
SEC. 5. RELOCATION BENEFITS.
Section 731 is amended by adding after subsection
(e) the following:
‘‘(f) The Comptroller General shall prescribe regula-
tions under which officers and employees of the Office
may, in appropriate circumstances, be reimbursed for any
relocation expenses under subchapter II of chapter 57 of
title 5 for which they would not otherwise be eligible, but
only if the Comptroller General determines that the trans-
fer giving rise to such relocation is of sufficient benefit
or value to the Office to justify such reimbursement.’’.
SEC. 6. INCREASED ANNUAL LEAVE FOR KEY EMPLOYEES.
Section 731 is amended by adding after subsection
(f) (as added by section 5 of this Act) the following:
‘‘(g) The Comptroller General shall prescribe regula-
tions under which key officers and employees of the Office
who have less than 3 years of service may accrue leave
in accordance with section 6303(a)(2) of title 5, in those
circumstances in which the Comptroller General has deter-
mined such increased annual leave is appropriate for the
recruitment or retention of such officers and employees.
Such regulations shall define key officers and employees
and set forth the factors in determining which officers and
employees should be allowed to accrue leave in accordance
with this subsection.’’.
SEC. 7. EXECUTIVE EXCHANGE PROGRAM.
Section 731 is amended by adding after subsection
(g) (as added by section 6 of this Act) the following:
‘‘(h) The Comptroller General may by regulation es-
tablish an executive exchange program under which offi-
cers and employees of the Office may be assigned to pri-
vate sector organizations, and employees of private sector
organizations may be assigned to the Office, to further
the institutional interests of the Office or Congress, in-
cluding for the purpose of providing training to officers
and employees of the Office. Regulations to carry out any
such program—
‘‘(1) shall include provisions (consistent with
sections 3702 through 3704 of title 5) as to matters
concerning—
‘‘(A) the duration and termination of as-
signments;
‘‘(B) reimbursements; and
‘‘(C) status, entitlements, benefits, and ob-
ligations of program participants;
‘‘(2) shall limit—
‘‘(A) the number of officers and employees
who are assigned to private sector organizations
at any one time to not more than 15; and
‘‘(B) the number of employees from private
sector organizations who are assigned to the Of-
fice at any one time to not more than 30;
‘‘(3) shall require that an employee of a private
sector organization assigned to the Office may not
have access to any trade secrets or to any other non-
public information which is of commercial value to
the private sector organization from which such em-
ployee is assigned;
‘‘(4) shall require that, before approving the as-
signment of an officer or employee to a private sec-
tor organization, the Comptroller General shall de-
termine that the assignment is an effective use of
the Office’s funds, taking into account the best in-
terests of the Office and the costs and benefits of al-
ternative methods of achieving the same results and
objectives; and
‘‘(5) shall not allow any assignment under this
subsection to commence after the end of the 5-year
period beginning on the date of the enactment of
this subsection.
‘‘(i) An employee of a private sector organization as-
signed to the Office under the executive exchange program
shall be considered to be an employee of the Office for
purposes of—
‘‘(1) chapter 73 of title 5;
‘‘(2) sections 201, 203, 205, 207, 208, 209,
603, 606, 607, 643, 654, 1905, and 1913 of title 18;
‘‘(3) sections 1343, 1344, and 1349(b) of this
title;
‘‘(4) chapter 171 of title 28 (commonly referred
to as the ‘Federal Tort Claims Act’) and any other
Federal tort liability statute;
‘‘(5) the Ethics in Government Act of 1978 (5
U.S.C. App.);
‘‘(6) section 1043 of the Internal Revenue Code
of 1986; and
‘‘(7) section 27 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 423).’’.
SEC. 8. REDESIGNATION.
(a) IN GENERAL.—The General Accounting Office is
hereby redesignated the Government Accountability Of-
fice.
(b) REFERENCES.—Any reference to the General Ac-
counting Office in any law, rule, regulation, certificate, di-
rective, instruction, or other official paper in force on the
date of enactment of this Act shall be considered to refer
and apply to the Government Accountability Office.
SEC. 9. PERFORMANCE MANAGEMENT SYSTEM.
Paragraph (1) of section 732(d) is amended to read
as follows:
‘‘(1) for a system to appraise the performance
of officers and employees of the General Accounting
Office that meets the requirements of section 4302
of title 5 and in addition includes—
‘‘(A) a link between the performance man-
agement system and the agency’s strategic
plan;
‘‘(B) adequate training and retraining for
supervisors, managers, and employees in the
implementation and operation of the perform-
ance management system;
‘‘(C) a process for ensuring ongoing per-
formance feedback and dialogue between super-
visors, managers, and employees throughout the
appraisal period and setting timetables for re-
view;
‘‘(D) effective transparency and account-
ability measures to ensure that the management
of the system is fair, credible, and equitable, in-
cluding appropriate independent reasonableness,
reviews, internal assessments, and employee
surveys; and
‘‘(E) a means to ensure that adequate
agency resources are allocated for the design,
implementation, and administration of the per-
formance management system;’’.
SEC. 10. CONSULTATION.
Before the implementation of any changes authorized
under this Act, the Comptroller General shall consult with
any interested groups or associations representing officers
and employees of the General Accounting Office.
SEC. 11. REPORTING REQUIREMENTS.
(a) ANNUAL REPORTS.—The Comptroller General
shall include—
(1) in each report submitted to Congress under
section 719(a) of title 31, United States Code, dur-
ing the 5-year period beginning on the date of enact-
ment of this Act, a summary review of all actions
taken under sections 2, 3, 4, 6, 7, 9, and 10 of this
Act during the period covered by such report,
including—
(A) the respective numbers of officers and
employees—
(i) separating from the service under
section 2 of this Act;
(ii) receiving pay retention under sec-
tion 4 of this Act;
(iii) receiving increased annual leave
under section 6 of this Act; and
(iv) engaging in the executive ex-
change program under section 7 of this
Act, as well as the number of private sec-
tor employees participating in such pro-
gram and a review of the general nature of
the work performed by the individuals par-
ticipating in such program;
(B) a review of all actions taken to formu-
late the appropriate methodologies to implement
the pay adjustments provided for under section
3 of this Act, except that nothing under this
subparagraph shall be required if no changes
are made in any such methodology during the
period covered by such report; and
(C) an assessment of the role of sections 2,
3, 4, 6, 7, 9, and 10 of this Act in contributing
to the General Accounting Office’s ability to
carry out its mission, meet its performance
goals, and fulfill its strategic plan; and
(2) in each report submitted to Congress under
such section 719(a) after the effective date of sec-
tion 3 of this Act and before the close of the 5-year
period referred to in paragraph (1)—
(A) a detailed description of the meth-
odologies applied under section 3 of this Act
and the manner in which such methodologies
were applied to determine the appropriate an-
nual pay adjustments for officers and employees
of the Office;
(B) the amount of the annual pay adjust-
ments afforded to officers and employees of the
Office under section 3 of this Act; and
(C) a description of any extraordinary eco-
nomic conditions or serious budget constraints
which had a significant impact on the deter-
mination of the annual pay adjustments for of-
ficers and employees of the Office.
(b) FINAL REPORT.—Not later than 6 years after the
date of enactment of this Act, the Comptroller General
shall submit to Congress a report concerning the imple-
mentation of this Act. Such report shall include—
(1) a summary of the information included in
the annual reports required under subsection (a);
(2) recommendations for any legislative changes
to section 2, 3, 4, 6, 7, 9, or 10 of this Act; and
(3) any assessment furnished by the General
Accounting Office Personnel Appeals Board or any
interested groups or associations representing offi-
cers and employees of the Office for inclusion in
such report.
(c) ADDITIONAL REPORTING.—Notwithstanding any
other provision of this section, the reporting requirement
under subsection (a)(2)(C) shall apply in the case any re-
port submitted under section 719(a) of title 31, United
States Code, whether during the 5-year period beginning
on the date of enactment of this Act (as required by sub-
section (a)) or at any time thereafter.
SEC. 12. TECHNICAL AMENDMENT.
Section 732(h)(3)(A) is amended by striking ‘‘reduc-
tion force’’ and inserting ‘‘reduction in force’’.
SEC. 13. EFFECTIVE DATES.
(a) IN GENERAL.—Except as provided in subsection
(b), this Act and the amendments made by this Act shall
take effect on the date of enactment of this Act.
(b) PAY ADJUSTMENTS.—
(1) IN GENERAL.—Section 3 of this Act and
the amendments made by that section shall take ef-
fect on October 1, 2005, and shall apply in the case
of any annual pay adjustment taking effect on or
after that date.
(2) INTERIM AUTHORITIES.—In connection with
any pay adjustment taking effect under section
732(c)(3) or 733(a)(3)(B) of title 31, United States
Code, before October 1, 2005, the Comptroller Gen-
eral may by regulation—
(A) provide that such adjustment not be
applied in the case of any officer or employee
whose performance is not at a satisfactory level,
as determined by the Comptroller General for
purposes of such adjustment; and
(B) provide that such adjustment be re-
duced if and to the extent necessary because of
extraordinary economic conditions or serious
budget constraints.
(3) ADDITIONAL AUTHORITY.—
(A) IN GENERAL.—The Comptroller Gen-
eral may by regulation delay the effective date
of section 3 of this Act and the amendments
made by that section for groups of officers and
employees that the Comptroller General con-
siders appropriate.
(B) INTERIM AUTHORITIES.—If the Comp-
troller General provides for a delayed effective
date under subparagraph (A) with respect to
any group of officers or employees, paragraph
(2) shall, for purposes of such group, be applied
by substituting such date for ‘‘October 1,
2005’’.
Passed the House of Representatives February 25,
2004.
Attest:
Clerk.