(d) REIMBURSEMENT FOR COSTS.—The costs of serv-
ices provided to current or former employees of another
agency shall be reimbursed by that agency.
SEC. 505. EDUCATION AND RETRAINING INCENTIVES.
(a) NON-FEDERAL EMPLOYMENT INCENTIVE PAY-
MENTS.—
(1) DEFINITIONS.—For purposes of this sub-
section—
(A) the term ‘‘eligible employee’’ means an
employee who is involuntarily separated from a
position, or voluntarily separated from a surplus
position, in or under an Executive agency due to
a reduction in force, except that such term does
not include an employee who, at the time of sep-
aration, meets the age and service requirements
for an immediate annuity under subchapter III
of chapter 83 or chapter 84 of title 5, United
States Code, other than under section 8336(d) or
8414(b) of such title;
(B) the term ‘‘non-Federal employer’’ means
an employer other than the Government of the
United States or any agency or other instrumen-
tality thereof;
(C) the term ‘‘Executive agency’’ has the
meaning given such term by section 105 of title
5, United States Code; and
(D) the term ‘‘surplus position’’ has the
meaning 
given 
such 
term 
by 
section
8905(d)(4)(C) of title 5, United States Code.
(2) AUTHORITY.—The head of an Executive
agency may pay retraining and relocation incentive
payments, in accordance with this subsection, in
order to facilitate the reemployment of eligible em-
ployees who are separated from such agency.
(3) RETRAINING INCENTIVE PAYMENT.—
(A) AGREEMENT.—The head of an Execu-
tive agency may enter into an agreement with a
non-Federal employer under which the non-Fed-
eral employer agrees—
(i) to employ an individual referred to
in paragraph (2) for at least 12 months for
a salary which is mutually agreeable to the
employer and such individual; and
(ii) to certify to the agency head any
costs incurred by the employer for any nec-
essary training provided to such individual
in connection with the employment by such
employer.
(B) PAYMENT
OF
RETRAINING
INCENTIVE
PAYMENT.—The agency head shall pay a retrain-
ing incentive payment to the non-Federal em-
ployer upon the employee’s completion of 12
months of continuous employment by that em-
ployer. The agency head shall prescribe the
amount of the incentive payment.
(C) PRORATION
RULE.—The agency head
shall pay a prorated amount of the full retrain-
ing incentive payment to the non-Federal em-
ployer for an employee who does not remain em-
ployed by the non-Federal employer for at least
12 months, but only if the employee remains so
employed for at least 6 months.
(D) LIMITATION.—In no event may the
amount of the retraining incentive payment
paid for the training of any individual exceed
the amount certified for such individual under
subparagraph (A), subject to subsection (c).
(4) RELOCATION
INCENTIVE
PAYMENT.—The
head of an agency may pay a relocation incentive
payment to an eligible employee if it is necessary for
the employee to relocate in order to commence em-
ployment with a non-Federal employer. Subject to
subsection (e), the amount of the incentive payment
shall not exceed the amount that would be payable for
travel, transportation, and subsistence expenses under
subchapter II of chapter 57 of title 5, United States
Code, including any reimbursement authorized under
section 5724b of such title, to a Federal employee who
transfers between the same locations as the individual
to whom the incentive payment is payable.
(5) DURATION.—No incentive payment may be
paid for training or relocation commencing after
June 30, 2002.
(6) SOURCE.—An incentive payment under this
subsection shall be payable from appropriations or
other funds available to the agency for purposes of
training (within the meaning of section 4101(4) of
title 5, United States Code).
(b) EDUCATIONAL ASSISTANCE.—
(1) DEFINITIONS.—For purposes of this sub-
section—
(A) the term ‘‘eligible employee’’ means an
eligible employee, within the meaning of sub-
section (a), who—
(i) is employed full time on a perma-
nent basis;
(ii) has completed at least 3 years of
current continuous service in any Executive
agency or agencies; and
(iii) is admitted to an institution of
higher education within 1 year after sepa-
ration;
(B) the term ‘‘Executive agency’’ has the
meaning given such term by section 105 of title
5, United States Code;
(C) the term ‘‘educational assistance’’
means payments for educational assistance as
provided in section 127(c)(1) of the Internal
Revenue Code of 1986 (26 U.S.C. 127(c)(1)); and
(D) the term ‘‘institution of higher edu-
cation’’ has the meaning given such term by sec-
tion 1201(a) of the Higher Education Act of
1965 (20 U.S.C. 1141(a)).
(2) AUTHORITY.—Under regulations prescribed
by the Office of Personnel Management, and subject to
the limitations under subsection (c), the head of an
Executive agency may, in his or her discretion, pro-
vide educational assistance under this subsection to
an eligible employee for a program of education at an
institution of higher education after the separation of
the employee.
(3) DURATION.—No educational assistance under
this subsection may be paid later than 10 years after
the separation of the eligible employee.
(4) SOURCE.—Educational assistance payments
shall be payable from appropriations or other funds
which would have been used to pay the salary of the
eligible employee if the employee had not separated.
(5) REGULATIONS.—The Office of Personnel
Management shall prescribe regulations for the ad-
ministration of this subsection. Such regulations shall
provide that educational assistance payments shall be
limited to amounts necessary for current tuition and
fees only.
(c) LIMITATIONS.—
(1) AGGREGATE LIMITATION.—No incentive pay-
ment or educational assistance payment may be paid
under this section to or on behalf of any individual
to the extent that such amount would cause the aggre-
gate amount otherwise paid or payable under this sec-
tion, to or on behalf of such individual, to exceed
$10,000.
(2) LIMITATION RELATING TO EDUCATIONAL AS-
SISTANCE.—The total amount paid under subsection
(b) to any individual—
(A) may not exceed $6,000 if the individual
has at least 3 but less than 4 years of qualifying
service; and
(B) may not exceed $8,000 if the individual
has at least 4 but less than 5 years of qualifying
service.
(3) QUALIFYING
SERVICE.—For purposes of
paragraph (2), the term ‘‘qualifying service’’ means
service performed as an employee, within the meaning
of section 2105 of title 5, United States Code, on a
permanent full-time or permanent part-time basis
(counting part-time service on a prorated basis).
TITLE VI—MISCELLANEOUS
SEC. 601. REIMBURSEMENTS RELATING TO PROFESSIONAL
LIABILITY INSURANCE.
(a) AUTHORITY.—Notwithstanding any other provi-
sion of law, any amounts appropriated, for fiscal year 1997
or any fiscal year thereafter, for salaries and expenses of
Government employees may be used to reimburse any quali-
fied employee for not to exceed one-half the costs incurred
by such employee for professional liability insurance. A
payment under this section shall be contingent upon the
submission of such information or documentation as the
employing agency may require.
(b) QUALIFIED EMPLOYEE.—For purposes of this sec-
tion, the term ‘‘qualified employee’’ means—
(1) an agency employee whose position is that of
a law enforcement officer;
(2) an agency employee whose position is that of
a supervisor or management official; or
(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 agen-
cy, 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 primarily
the investigation, apprehension, prosecution, or deten-
tion of individuals suspected or convicted of offenses
against the criminal laws of the United States, in-
cluding any law enforcement officer under section
8331(20) or 8401(17) of such title 5;
(3) the terms ‘‘supervisor’’ and ‘‘management of-
ficial’’ 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 (in-
cluding the expenses of litigation and settlement)
resulting from or arising out of any tortious act,
error, or omission of the covered individual
(whether common law, statutory, or constitu-
tional) while in the performance of such individ-
ual’s official duties as a qualified employee; 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 proceeding.
(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 ex-
tent that the head of such agency considers appro-
priate 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, United
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 obligation, except
as provided in subsection (b), or unless no employee whose
position is abolished because such activity has been con-
verted to contract can demonstrate appropriate qualifica-
tions for the position.
(b) EXCEPTION.—Notwithstanding the contractor’s ob-
ligation under subsection (a), the contractor is not required
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 performance rat-
ing.
(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 sec-
tion 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 in-
serting 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, suspended,
restricted, or not renewed, by a State licensing
authority for reasons relating to the provider’s
professional competence, professional perform-
ance, 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 control-
ling interest, by an individual who is convicted of
any offense described in subsection (b), against whom
a civil monetary penalty has been assessed under sub-
section (d), or who has been excluded from participa-
tion 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 cus-
tomary charges for such services or supplies (unless
the Office finds there is good cause for such charge),
or charged for health care services or supplies which
are substantially in excess of the needs of the covered
individual or which are of a quality that fails to meet
professionally recognized standards 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 para-
graph (3), by amending paragraph (1) to read as fol-
lows:
‘‘(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 para-
graph (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 para-
graph (3)—
(A) by striking ‘‘(g)(1)’’ and all that follows
through the end of paragraph (1) and inserting
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 Office.
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 warrants
an earlier effective date, the Office shall not make a deter-
mination 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 subsection (h)(1).’’;
(B) in paragraph (3)—
(i) by inserting ‘‘of debarment’’ after
‘‘notice’’; and
(ii) by adding at the end the following:
‘‘In the case of a debarment under para-
graphs (1) through (4) of subsection (b), the
minimum period of exclusion shall not be
less than 3 years, except as provided in
paragraph (4)(B)(ii).’’; and
(C) in paragraph (4)(B)(i)(I) by striking
‘‘subsection (b) or (c)’’ and inserting ‘‘subsection
(b), (c), or (d)’’;
(7) in subsection (h), as so redesignated by para-
graph (3), by striking ‘‘(h)(1)’’ and all that follows
through the end of paragraph (2) and inserting the
following:
‘‘(h)(1) Any provider of health care services or supplies
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 judi-
cial 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 deter-
mination under this section. Such hearing shall be con-
ducted without regard to subchapter II of chapter 5 and
chapter 7 of this title by a hearing officer who shall be des-
ignated by the Director of the Office and who shall not oth-
erwise have been involved in the adverse determination
being appealed. A request for a hearing under this sub-
section must be filed within such period and in accordance
with such procedures as the Office shall prescribe by regula-
tion.
‘‘(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 decision
in the United States District Court for the District of Co-
lumbia or for the district in which the plaintiff resides or
has his principal place of business by filing a notice of ap-
peal 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 Office 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 re-
manding the cause for a rehearing. The district 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 discretion.’’; and
(8) in subsection (i), as so redesignated by para-
graph (3)—
(A) by striking ‘‘subsection (c)’’ and insert-
ing ‘‘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
deducted from any sum then or later owing by
the United States to the party against whom the
penalty or assessment has been levied.’’.
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in para-
graph (2), this section shall take effect on the date of
the enactment of this Act.
(2) EXCEPTIONS.—(A) Paragraphs (2) and (4)
of section 8902a(c) of title 5, United States Code, as
amended by subsection (a), shall apply only to the ex-
tent that the misconduct which is the basis for debar-
ment thereunder occurs after the date of the enact-
ment of this Act.
(B) Section 8902a(d)(1)(B) of title 5, United
States Code, as amended by subsection (a), shall
apply only with respect to charges which violate sec-
tion 8904(b) of such title 5 for items and services fur-
nished after the date of the enactment of this Act.
(C) Section 8902a(g)(3) of title 5, United States
Code, as amended by subsection (a), shall apply only